Goldman Sachs Group Inc. selected Mazars Group to audit its European operations, the first time a U.S. bank will use an accounting firm other than the so-called Big Four — Ernst & Young, KPMG, PricewaterhouseCoopers and Deloitte — to vet its books, the Financial Times reported.
The move is a result of European audit rules enacted in 2016, which also apply to U.S. and Asian companies that are considered public interest entities in Europe.
Mazars will replace PwC as the European auditor for Goldman Sachs International from 2021, while PwC will be retained by Goldman as its group auditor. Goldman did not choose another Big Four firm as they all provide consulting services to the bank, according to the report.
Grant Thornton NSW was until 2018 considered to be Goldman's favored choice until it pulled out following controversies over its leadership and audit work. As a result, the choices were narrowed down to Mazars and BDO LLP.
Goldman did not disclose why it selected Mazars over BDO. Mazars also declined to comment, the news outlet reported.