Audit tendering
During the year the committee considered the group’s position on its audit services contract taking into account the UK Corporate Governance Code, the EU Audit Regulation 2014 and the Statutory Audit Service Order 2014, order issued by the UK Competitions and Markets Authority.
Having considered the impact of these regimes, the committee concluded that the best interests of the group and its shareholders would be served by utilizing the transition arrangements outlined by the Financial Reporting Council in relation to the governance code and retaining BP’s existing audit firm until the conclusion of the term of its current lead partner.
Accordingly the committee intends that the audit contract will be put out to tender in 2016, in order that a decision can be taken and communicated to shareholders at BP’s AGM in 2017; the new audit services contract would then be effective from 2018.