Cinema operator Cineworld has dropped accountancy firm KPMG as it auditor after 15 years.
The auditing costs for the cinema franchise rose considerably over last year according to its annual report, costing the company $2.2m (£1.7m).
The tender was not required to be renewed until 2026, having renewed with firm in 2016.
Anthony Bloom, chairman, Cineworld said: “The company’s previous auditor, KPMG, submitted its letter of resignation to the board of directors of the Company on 17 June 2019, along with a “statement of reasons” for its resignation.’ The move came after Cineworld had conducted new audit tender process ‘in accordance with good corporate governance policy on auditor rotation.”
In its resignation letter, the firm added: “The reason connected with our ceasing to hold office is the holding of a competitive tender for the audit, in which we declined to participate as we did not consider that it was likely that we would be able to agree acceptable commercial terms.”