Newscorp flips switch on Andersen
Rupert Murdoch's Australian-based media empire, News Corporation, has fired Andersen, claiming the firm can no longer serve its global demands.
The company, which includes US subsidiary Fox Entertainment, made the announcement today after the Australian Securities and Investment Commission granted permission for Newscorp to replace the rapidly-disappearing firm.
Ironically, Newscorp has chosen Ernst & Young for its new auditor – the firm set to take over Andersen in Australia and New Zealand.
In a statement to the Australian Stock Exchange, Newscorp said the decision was not the result of any disagreements with the firm over previous audits but because of the ‘uncertain future of Andersen’s international structure’.
Yesterday Andersen UK, which has clinched a tie-up with Deloitte & Touche, said it was to shed 1,500 jobs, or about 30% of its British workforce.