In a challenging economic environment, companies are continuing
to review their spending to ensure that they are obtaining maximum
value for their shareholders. As part of this, many companies are
reviewing their external audit arrangements and undertaking a
competitive audit tender process to test the marketplace.
Conducting an audit tender and replacing an auditor requires
strict compliance with prescribed procedures, including obtaining
the approval of shareholders. Companies who are intending to
conduct an audit tender should therefore consider commencing the
process now in order to align with their annual general meeting
(AGM).
In this Alert, Partner Simon Panegyres and Associate Ryan White
consider the steps involved in the resignation and replacement of
an auditor in the context of a competitive tender process.
