The bank is showing its longtime external auditor the door amidst backlash over tax info leak
Westpac has announced its decision to sever ties with PricewaterhouseCoopers (PwC) as its external auditor, following a long-standing relationship dating back to 1968.
The move comes amidst ongoing scandals involving PwC, prompting Westpac to open a tender for a new accountant while specifically excluding the troubled firm, according to a report by The Australian.
In a statement released on Wednesday, Westpac said that their choice to tender the audit aligns with best practices for audit firm rotation.
“Due to their tenure as the group’s external auditor, PwC has not been invited to participate in the tender,” the statement said.
The scandal-ridden firm has faced backlash from numerous high-profile clients, including the Reserve Bank of Australia and major pension funds, after it was revealed that they leaked confidential tax information from the Australian Treasury to multinational clients, The Australian reported.
Commonwealth Bank is the only major bank besides Westpac that currently employs PwC as auditors. ANZ utilises the services of KPMG, while the accounts of National Australia Bank are signed off by EY. Commonwealth Bank previously sought and obtained assurances from PwC following the scandal, expressing satisfaction with their ongoing role as auditors, The Australian reported.
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Responding to Westpac's decision, a spokesperson from PwC expressed its pride in having served Westpac's shareholders during its term as auditor.
“We understand the decision of the board to tender the audit and will prioritise the performance of our role with commitment and diligence for our remaining term,” a spokesperson told The Australian.
Earlier this week, Westpac reported a 26% jump in its net profit for FY2023. Last month, the bank announced the appointment of Steven Gregg as its new chairman.
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