IBT joins audit shuffle

IBT Education has become the third listed Western Australian company in as many months to switch its audit work from a second-tier firm to one of the big four accounting firms.

In all cases the companies said the change was in response to the international growth and increasing complexity of their business activities.

IBT announced last week that Deloitte would replace Grant Thornton, subject to shareholder approval at its annual general meeting.

IBT director Harvey Collins said the board’s audit and risk committee believed “Deloitte has the most appropriate capabilities to support the needs of the IBT Group in the future given the projected increase in complexity and geographical spread”.

He said IBT was targeting organic growth and acquisitions in Australia, the UK, Canada and Africa over the next few years.

Mr Collins added that the change did not in any way reflect on Grant Thornton’s services.

Central Asia Gold shareholders last month approved the appointment of Ernst & Young as its audit firm, replacing Stanton Partners.

This followed Central Asia’s listing on the Toronto Stock Exchange in February.

The company said it was “prudent” to move its audit services and other services to a firm “able to assist with both local and international reporting requirements”.

Central Asia’s audit is expected to become more complex in future, as the company is due shortly to commence the $US67 million ($A87 million) development of its Taldy Bulak gold project in the Kyrgyz Republic.

Ernst & Young already provided tax services to Central Asia, which held a competitive tender for the audit contract.

The third WA firm to have switched auditors recently was Paladin Resources.

Like Central Asia, Paladin is listed in Canada and is developing an offshore mining project, in its case a uranium mine in Namibia in West Africa.

It switched its audit contract from RSM Bird Cameron to Ernst & Young.

In other news, engineering contractor Macmahon has put its audit up for tender. The incumbent, Deloitte, is believed to have lost the contract to another big four accounting firm.

The loss of the Macmahon contract would slightly offset the four new external audit contracts secured by Deloitte this year. In addition to IBT Education, it has picked up the audit work for Minara Resources, Portman and Ticor from other big four firms.