Westpac to dump PwC as auditor after 55 years

The banking major will boot the accounting and advisory group as its long-term external auditor, opening a tender for a new accountant that explicitly excludes the scandal-ridden firm.

Westpac will end its ties with PricewaterhouseCoopers as its long-term external auditor, opening a tender for a new accountant that explicitly excludes the scandal-ridden firm.

PwC and individuals who were partners of the firm or its antecedent firms have been auditors of the Sydney-based bank since 1968.

In a statement to the exchange on Wednesday, Westpac said “the decision to tender the audit reflects best practice 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.

PwC was banned by several high profile clients, including the Reserve Bank of Australia and the country’s largest pension funds, following revelations that the firm had leaked confidential tax information from the Australian Treasury to multinational clients.

Commonwealth Bank and Westpac are the only two major banks employing PwC as auditors. Australia and New Zealand Banking Group uses KPMG, while the accounts of National Australia Bank are signed off by EY.

CBA, the nation’s largest lender, last August said it had sought and obtained assurances from the firm in the aftermath of the scandal and that it was satisfied about their ongoing role as auditors.

In an emailed statement, a PwC spokesperson said the firm was “proud” to have served Westpac’s shareholders “in our time 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,” the person said.

Earlier this week, the Foreign Investment Review Board signed off on PwC Australia’s sale of its government consulting arm to a group of partners and Allegro Funds for $1.