BT hangs up on auditor PwC following Italian scandal

KPMG is taking over from PwC as the telecoms giant's auditor. Picture: Michael Gillen
KPMG is taking over from PwC as the telecoms giant's auditor. Picture: Michael Gillen
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BT has appointed KPMG as its new auditor following the company’s Italian accounting scandal.

The telecoms group said the professional services firm will replace previous auditor PwC, closing the chapter on a 30-year relationship with the accountancy giant.

• READ MORE: BT warns of £530m hit from ‘improper practices’ in Italy

PwC will complete its audit of BT’s accounts for the 2017/18 financial year, after which KPMG will be appointed as auditor, subject to approval by shareholders at the 2018 annual general meeting.

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The move comes after an accounting scandal at the firm’s Italian division, BT Italia, which resulted in the firm booking a £530 million writedown.

Shares plummeted 19 per cent when BT first revealed details of the irregularities in January, wiping £8 billion off its stock market value.

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BT boss Gavin Patterson was also stripped of his bonus following the scandal, with his total pay packet cut from £5.3m to £1.3m.

“BT, KPMG and PwC will commence transition planning immediately to ensure a smooth and effective migration during 2017/18”, the company said.

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