Cinema multiplex operator Cineworld has appointed PwC as auditor, with effect from 17 June 2019 following a tender process for the statutory auditor contract. The company said the process was ‘in accordance with good corporate governance policy on auditor rotation’.
In its letter of resignation, KPMG said it declined to participate in the competitive tender for the audit ‘as we did not consider that it was likely that we would be able to agree acceptable commercial terms’.
In its last annual report for the year to end-2018, the company noted that it had last conducted a tender process in February 2016 and that to comply with the relevant tendering and auditor rotation requirements applicable under UK and EU regulations, the next external audit tender was scheduled to occur by 2026 while the then current lead audit partner would be required to change in 2021.
The annual report also shows audit costs of $2.2m for 2018, rising from $700,000 in 2017 although the company also paid KPMG $1.7m in 2017 for other advisory services.
