Vodafone Places Big Four Accounting Giants on Red Alert

By Maksym Kozlenko [CC BY-SA 3.0] via Wikimedia Commons

Vodafone has requested three of the Big Four accountancy firms to clear the decks in preparation for a possible audit re-tender.

The FTSE 100 telecoms company may be compelled to stop ties with PwC, its current auditor, amid the threat of a lawsuit from the accounting giant, opening the door to KPMG, EY, and Deloitte.

Currently, PwC is managing Phones 4U, the collapsed mobile retailer, and has been drafting up plans to sue Vodafone for the company’s alleged role in the downfall of the firm.

In September 2014, Phones 4U fell into administration after leading mobile firms ceased supplying the retailer.

PwC, which won the Vodafone audit last February 2014, may witness another FTSE 100 client fall through its grasp. The firm lost Tesco in 2015 and BT, a Vodafone rival, earlier this year.

Over the weekend, Sky News first reported that insiders stressed that Vodafone has yet to reach a firm decision regarding the future of PwC, instead highlighting that Vodafone had contacted rivals of PwC to review any ongoing engagements with the mobile company and consider if they represented a conflict to performing the audit in the future.

PwC and Vodafone refused to comment.