EY will replace BHP’s former auditor KPMG after its rival resigned from the position due to “UK and EU requirements on auditor tenure”.
Under UK audit rules there is currently a 20-year tenure limit which would have forced KPMG to relinquish the position of auditor by 1 July 2023 at the latest. However, the switch was made early to reduce disruption as it also coincided with the rotation of KPMG’s current lead audit partner.
The move, which was first announced in 2017, will be a global appointment with core EY teams in various offices across the world, including the UK.
At the time of the announcement Hywel Ball, EY’s UK head of audit, said: “We are thrilled to be named auditors to BHP Billiton and are proud to have been selected from among the competition.
“BHP is the largest diversified miner in the world. Our global structure, combined with our wealth of experience in the sector, helps enable us to advise international businesses of this scale. We are delighted about the opportunities this audit win will bring to our people across the globe.”