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Royal Dutch to Shed KPMG, Keep PwC

PwC will be the only firm to perform the energy giant's audit and audit-related services, provide the audit opinion on its financial statements, and review its quarterly results.
Stephen Taub, | US
October 27, 2005

Dropping its dual-auditor approach, Royal Dutch Shell plc will dispense with KPMG and retain only PricewaterhouseCoopers to check its books.

PwC will perform the audit and audit-related services of the worldwide operations of Royal Dutch Shell plc, provide the audit opinion on the financial statements, and review the quarterly results, the company said.

But Royal Dutch Shell, the world's third-largest listed oil firm by market value, isn't totally severing its ties with KPMG. CFO Peter Voser said the firm will provide nonaudit services.

PwC's engagement as the company's sole auditor will take effect on November 7. The Netherlands-based energy giant said it decided earlier this year that it would move to a single audit firm after the unification of Royal Dutch and Shell Transport into one parent company, Royal Dutch Shell plc, which was completed in July.

"The choice of a single audit firm for the company is another step towards simplification and standardization of our processes," said Voser.

In a separate announcement, Shell said that quarterly earnings surged 68 percent to $9 billion. "We are capturing the benefits of high oil and gas prices and refining margins," said Voser, according to the Associated Press.