(Corrects third paragraph to say fraud scandal, not tax scandal)
ZURICH, May 22 (Reuters) - 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