Johnston Carmichael has won the audit contract for a major private equity investment trust in the wake of changes to guidance over independence of auditors.
The Aberdeen-headquartered firm is taking over from KPMG at the Dunedin Enterprise Trust following a competitive tender which the Big Four player was not invited to take part in. The trust reported a net asset value of £82 million in its most recent interim results.
The board of the trust said the decision to hold a tender for the audit contract came in the wake of the Financial Reporting Council's updated guidance on auditor independence.
The trust said the new guidance had made it “increasingly difficult” for KPMG to provide non audit services to companies in its portfolio or the limited partnership funds in which Dunedin Enterprise has an interest.
“As a result and to ensure auditor independence, the board has appointed Johnston Carmichael as auditor,” the trust said.
The trust’s annual report for the current financial year will provide further details on the competitive audit tender process. Shareholders will have the opportunity to vote on the election of Johnston Carmichael as auditors at AGM to be held in May 2020.
The trust specialises in the provision of private equity finance and mainly invests in UK lower mid-market management buyouts with enterprise values of £20-£100 million.
Graham Marjoribanks, head of audit and assurance at Johnston Carmichael, said: “Dunedin Enterprise invests primarily in private equity investments, either through private equity funds managed by the Trust’s manager, Dunedin LLP, or directly. We are proud to be appointed as auditors and look forward to working with the Trust.”
