The Bank of England could replace KPMG as its auditor

The Bank of England is reportedly seeking a new auditor, in a move which could see it part company with KPMG.

Rivals are gearing up to take the role from KPMG according to Sky News. The firm has been the auditor for the central bank for a decade, having been brought in just before the collapse of NOrthern Rock in 2007.

The bank's rules dictate that it puts the contract out to tender every five years. Sources told Sky that a review was triggered at the beginning of this week, kicking off a potential face-off between the City's biggest accountants.

Read more: KPMG has been cleared of wrongdoing over its 2007 HBOS audit

Previous auditor PricewaterhouseCoopers (PwC) held the role for more than 85 years. It is thought to be likely that if KPMG misses out on a renewal of its position, the job will fall to either PwC or one of the other two firms in the so-called "big four": Deloitte or EY.

Formal talks are reportedly due to get underway imminently with KPMG's biggest competitors.

The process put in place by the Bank of England means that the statutory review could result in a new auditor being appointed to begin work in March 2019.

Read more: BoE deputy governor Ben Broadbent says more rate rises are on the way


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