Mid-Tier Firms BDO and Mazars in the Running
- Sports Direct approaches BDO and Mazars for new auditor
- Grant Thornton ceases to be the company’s auditors from September 11, 2019
- KPMG, Deloitte, and EY declined due to conflict of interest and PWC due to reluctance
- Sports Direct aims to avoid government intervention and suspension
Sports fashion retailer Sports Direct is reportedly considering mid-tier accountancy firms BDO and Mazars as potential new auditors, following Grant Thornton’s decision to step down. The company aims to avoid government intervention and suspension from the London Stock Exchange (LSE) after tax issues led to delayed annual results. Grant Thornton will cease being Sports Direct’s auditor on September 11, 2019. ‘Big Four’ firms KPMG, Deloitte, and EY declined due to conflict of interest or reluctance, while PWC did not engage based on the company’s ownership structure.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Sports Direct’s search for a new auditor after Grant Thornton announced its decision to step down. It also explains the reasons behind other firms declining to take on the role due to potential conflicts of interest or reluctance. The only minor issue is that it doesn’t mention the specific reason why Mazars and BDO were approached, but overall, it is a well-researched and informative piece.
Noise Level: 3
Noise Justification: The article provides relevant information about Sports Direct’s search for a new auditor and the reasons behind Grant Thornton’s departure. However, it could benefit from more in-depth analysis of the implications of the situation on the company and the industry.
Financial Relevance: Yes
Financial Markets Impacted: London Stock Exchange
Financial Rating Justification: The article discusses the appointment of a new auditor for Sports Direct, which is a publicly traded company listed on the London Stock Exchange. The change in auditors could impact the company’s relationship with the exchange and its financial operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation with Sports Direct and its auditor change is a financial issue, but it does not reach the level of a crisis or major disruption.
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