(Corrects third paragraph to say fraud scandal, not tax
ZURICH May 22 Swiss power transmission and
industrial automation company ABB plans to switch
auditors to KPMG from Ernst & Young, it said on Monday.
"This decision was taken following a year-long comprehensive
external auditor tender process initiated in 2016 in line
with international good governance practices," ABB said in a
statement. "The proposal is subject to shareholder
approval at ABB's 2018 annual general meeting."
It follows a fraud scandal for ABB in South Korea, which
exposed a failure to maintain effective financial controls. EY,
ABB's sole external auditor since 2001, concluded ABB had not
maintained effective internal control over financial reporting.
(Reporting by Joshua Franklin)