Deloitte has resigned as auditor to video games developer Game Digitalafter a five-year term and will be replaced by BDO, following a competitive tender process which included consideration of ways to reduce the cost of the audit process
In a statement, Game Digital said Deloitte had resigned as the company's auditor with effect from 1 November 2016 and that BDO will be appointed for the financial year ending 29 July 2017. The appointment remains subject to approval by shareholders at the annual general meeting in January 2016.
Deloitte first audited the group's main trading company Game Retail Ltd for the period ended July 2012. After five years of service, the company said it instigated a tender process which ‘investigated different options where it believed it could continue to receive exceptional service, but could potentially reduce the cost of the audit process. It successfully concluded its tender process and met its objectives’.
In the statement, the company’s board of directors extends its appreciation to Deloitte for their contribution over recent years.
Anna Draper, audit partner at BDO, said: ‘Following the competitive tender process, we are delighted to be appointed as auditor of Game Digital. This is a great addition to our portfolio of public interest entities, and we look forward to working with Game.’
According to its 2015 annual report, Game Digital paid a total of £300,000 in audit fees to Deloitte. In a note, the company said that during 2014/15, total fees paid to Deloitte for non-audit services amounted to nil.
However, Deloitte provided audit-related services in relation to turnover rent certificates and the interim review, amounting to £55,000. This was substantially lower than the £2.3m paid in 2013/14 (which was an exceptionally high level of fees, primarily on account of the reporting accountant services work carried out by Deloitte relating to the IPO in 2014).
