Callaway hits KPMG into the rough

Link: Read how Andersen collapsed

The decision was taken by the audit committee of Callaway following a dispute over how to account for a $17m reduction in reserves, and announced in a telephone conference call yesterday.

The company said it had gone with KPMG to the SEC to resolve the issue, but could not reach agreement. As a result, Callaway said it had decided to bring in ‘fresh eyes’ to look at the matter.

The company will now only file its third quarter earnings a month later, after having to wait for a report from its new auditor Deloitte Touche Tohmatsu.

Callaway was one of many US companies forced to change its auditor, after the demise of Andersen, which no longer has a license to audit in the US and is rapidly crumbling.

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