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News Corp dumps Andersen, appoints Ernst & Young as auditor

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Auditing firm Arthur Andersen's controversial links to failed energy giant Enron Corporation has had yet another fallout it appears. Rupert Murdoch's News Corporation has announced that its board of directors has appointed Ernst & Young to replace Arthur Andersen as the companys independent auditors for the year ending 30 June 2002.

The appointment of Ernst & Young was made after careful consideration by the audit committee, the board of directors and management of the company, an official release says. 

The decision to change auditors was not the result of any disagreement between the company and Arthur Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, the release states. During its tenure as the companys independent auditors, Arthur Andersen has provided many years of quality service and has demonstrated a high level of professionalism, it adds. 

The replacement of the independent auditors by the companys board of directors was made pursuant to relief granted by the Australian Securities and Investment Commission, the release concludes.


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