In its 2014 annual report, Diageo said it planned to put its audit out to tender, ‘in light of the requirements of the [Corporate Governance] Code and other changes to the regulatory framework’.

It noted that ‘overall tenure of the external auditor dates from 1997 and the audit was last tendered in 1999’.

Diageo has now confirmed that the board has selected PwC and subject to approval at the company's September 2015 AGM, the firm’s appointment will take effect for Diageo's financial year ending 30 June 2016.

According to its 2014 annual report, Diageo paid KPMG £7.3m in audit fees last year, plus an additional £1.7m in fees for additional services.

Diageo’s statement said: ‘KPMG has been the group's auditor since 1997 and the board would like to thank KPMG for its years of service to the company.’

Recent changes as a result of the Competition and Markets Authority (previously Competition Commission) investigation into the statutory audit market and new EU rules on audit tenure which introduce a 10-year limit have prompted a flurry of auditor changes amongst the UK’s largest companies.

Most recently, EY took over the RBS audit from Deloitte, who had audited the bank since 2000.

To find out the latest changes of audit tenure and current audit fee trends, read our exclusive FTSE 100 Auditors Survey

Sign up to our free newsletters to keep up to date with the latest developments in audit, tenders and corporate governance. Sign up here