B2B Payments

Report: Accounting Firms Turn Down Greensill Auditing Role

A number of large accounting groups have turned down requests to audit Greensill Capital as the SoftBank-backed firm mulls a stock market listing, the Financial Times (FT) reported.

The United Kingdom-based organization has become one of the most highly valued private finance firms in the nation as of its 2011 establishment. But FT reported that the firm’s auditor has been Saffery Champness instead of one of the Big Four accounting groups — Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.

In recent times, Saffery Champness agreed with Greensill that the company's balance sheet had become too large and intricate for the accounting firm’s offerings, FT reported, citing unnamed sources.

“Any business reviews its suppliers as they grow and their needs change,” Greensill said in a statement, per FT. “Greensill keeps these arrangements under review based on both value and expertise, and we undertake a competitive selection process for any new partners as needed.”

Deloitte and KPMG declined an invitation from Greensill "to tender for its audit mandate" in the words of FT, noting a conflict of interest, the outlet reported, citing unnamed sources.

In addition, challenger audit firm BDO turned down the position of auditor for Greensill due to reputational worries arising from its participation in asset management sector controversies, FT reported, citing unnamed sources.

Officials at SoftBank pushed Greensill to have a bigger and more renown group as its auditor, FT reported, citing unnamed sources.

The news comes as Greensill Capital is seeking an infusion of cash in the midst of financial setbacks, according to a past Wall Street Journal report.

Greensill is experiencing customer defaults and regulatory interest against an otherwise thriving backdrop. The company aims for fast payment to vendors at a discount, which provides its customers with a breathing period to conserve funds.

A representative of Geeensill told WSJ that the firm is looking for investment “from a position of strength amid booming demand for its financing tools during the coronavirus pandemic.”

Certain Greensill customers have encountered financial setbacks, such as NMC Health and Agritrade International.

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