It ought to have been a fiercely fought competition. Three years ago, after persevering with PwC for the first 119 years of its listed existence, Barclays decided to hold an audition for a new auditing firm.
The contract was not just prestigious; it was also lucrative. In the year before, the bank had paid PwC a thumping £44m to audit its books — one of the highest rates going in the UK market. Yet despite these inducements, Barclays struggled to get a contest going.
The bank ended up selecting KPMG — as much for the want of options as for any other reason.
Of the other “Big Four” accounting firms considered large enough to take on the job, both were conflicted. Deloitte was locked into a consulting contract with the bank, and observers say its bid was halfhearted. And while…
