KPMG has been appointed as auditor of British American Tobacco, replacing rival firm PwC.
The news follows BAT’s termination of its 17-year relationship with PwC due to filing a lawsuit against its former auditor.
The suit against PwC regards historic liabilities in the US, not of BAT itself, but of PwC’s audit of paper manufacturer Windward Prospects.
Both BAT and its US subsidiary are engaged in a long-running dispute with Windward, concerning the clean up operations of polluted rivers in the northern US state of Wisconsin.
BAT is currently suing Windward’s parent company, Sequana, its former directors and possibly former advisors PwC over an $800m indemnity for pollution costs paid by Windward.
The appointment of KPMG means the firm saw off challenges from other rivals EY and Deloitte. Firms other than the Big Four had not been invited to tender.
Story courtesy of Economia
Posted on Wednesday Mar 25