BioPharma Credit has revealed that ‘Big Four’ firm EY has decided to withdraw from its proposed role as auditor at the firm after discovering a conflict of interest due to tax work carried out by its U.S. offices.
In a statement, BioPharma said that the company was set to vote on the appointment of EY as auditor of the company following an audit tender process carried out earlier this year at its AGM on 17 June.
However, it said EY has now informed its board of directors that “it has come to light” that tax work carried out by its U.S. offices for the company for previous financial years up to the financial year ending on 31 December 2020 “technically precludes” EY from accepting the proposed appointment as auditor for the year to 31 December 2021.
As a result, its board has concluded that resolutions 9 and 10 at the AGM in connection with the appointment of EY can no longer be put to Shareholders and it will now withdraw these resolutions.
In addition, BioPharma revealed its board is now proposing that the company’s previous auditor, PricewaterhouseCoopers (PwC), be appointed for one further year.