HSBC, the UK’s largest bank by asset base, has chosen PwC as its external auditor as of 2015, which will end a 14-year audit relationship with KPMG.
KPMG will continue in the role of auditor for the year ending 31 December 2013 and 2014 with PwC taking over the 31 December 2015 audit.
The bank put its audit contract out to tender in March in order to comply with the UK Financial Reporting Council’s (FRC) revised Corporate Governance Code, which stipulates that external audit contracts are to be put out to tender every ten years.
John Coombe, chairman of HSBC’s audit committee, said: “The tender process was both comprehensive and thorough, culminating in a recommendation by the group audit committee to the board for the appointment of PwC for the audit of the consolidated accounts from 2015. We look forward to a constructive and professional relationship with PwC in support of the group audit committee’s responsibility for oversight over the integrity of financial reporting.”