Callaway hits KPMG into the rough
Golf club manufacturer, Callaway Golf, famous for its Big Bertha titanium driver, has fired its auditor KPMG, which replaced disgraced firm Andersen in March this year.
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.