Tomkins ditches Arthur Andersen
Industrial conglomerate Tomkins, whose chief executive Greg Hutchings resigned last October after allegations of corporate excess, has replaced its auditor Arthur Andersen with Deloitte & Touche.
The company became embroiled in controversy last year when it called in Andersens to look at the financial affairs of Hutchings after it was discovered his wife and housekeeper were also on the payroll. There were also allegations that Hutchings had used corporate aircraft, four of which were owned by the company, to fly to his Portugal holiday home.
Arthur Andersen, which came under fire for failing to point out the excesses during its audits of the company, was later dropped from the enquiry and replaced with Ernst & Young.
A Tomkins company statement yesterday said: ‘The directors of Tomkins announce that following the significant changes to the membership of the board, they have undertaken a review of audit arrangements. As a result they have invited Deloitte & Touche to accept appointment as auditor for the year ending 30 April 2001.’
Last year’s audit fee was £3.7m. Arthur Andersen earned an additional £9.1m for non-audit services.
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Hutchings resigns as audit chief