RE: rns27 Aug 2020 12:25
I have to say it is very unusual for a company to change its auditor at this stage of the year, just a couple of months before results are normally released. The financial year for GGP started on 1 July 2019 and finished on 30 June 2020, with results expected for release around the same time as last year ie end October - last year it was 29 October 2019.
The auditing work is normally ongoing throughout the year with financial testing, gathering evidence, getting management representations, post balance sheet events etc being obtained right up to the moment when the accounts are signed off.
Last year's auditors were Chapman Davis LLP based at 2 Chapel Court, London SE1 1HH. So one would assume that this firm would have gathered most of the evidence for the year just finished already.
Firms are normally reluctant to pass audit files between themselves IN YEAR but GGP may have come to an arrangement in this case - at a cost no doubt. I hope not too much duplication of audit resources will arise and hope that we have a smooth handover.
I am not familiar with Chapman Davis though I have come across PKF many times during my audit career and they were always a good bunch. With our growing market cap and ever increasing portfolio of assets it is not surprising GGP would have turned to a more experienced auditor. This is to be welcomed moving forward. It is just the timing that surprises me.
I might drop GH an email to clarify if indeed PKF will be signing off the 2019-20 financial accounts as I think, for me at least, this timing is puzzling.
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