DELOITTE’S tenure as auditor of Balfour Beatty is under risk, as the FTSE 250 builder will begin a tender process next year.
In the builder’s annual report, released today, it has outlined its decision to begin the audit tender process in the second half of 2015.
The UK corporate governance code suggests that the tender process should be put out no more than two years of the end of the current audit engagement partner’s departure, which would give Balfour Beatty until the end of 2017 to begin the process. However, it has decided the tender should coincide with the last year of the audit partner’s term.
Deloitte, which has served as auditor since 2003, earned £6.9m in fees from Balfour Beatty in the year ending 31 December 2013, of which £2.4m was for non-audit services.
The tender is the latest in what is expected to be a busy few years for the audit market, with listed companies revising their auditor incumbents following a regulatory drive to create more competition in the market.
The UK’s imminent exit from the EU that may now put the audit committee to the ultimate test
Audit tendering has turned from good practice to legal practice under the EU audit reforms
Businesses will have to think more strategically about where they can source those non-audit services in the future
The FRC has raised concerns that the FTSE 350 audit market remains highly concentrated among the Big Four despite high levels of tendering and rotation