PracticeAuditSunTrust drops Andersen

SunTrust drops Andersen

Andersen has been dropped as auditor by SunTrust, the US banking group, in favour of PricewaterhouseCoopers.

PwC was appointed after the board of directors voted this week to approve a recommendation by its chief financial officer and audit committee.

Andersen, the former auditor to collapsed energy giant Enron, is facing a testing time as its clients prepare for their annual general meetings where shareholders vote whether to retain the firm as auditor.

The Big Five firm was auditor at SunTrust for 60 years. The decision by SunTrust marks the biggest client defection from Andersen so far.

A company spokesman for SunTrust said its decision was in no way related to Enron.

Andersen received $1.68m (£1.17m) in auditing fees in 2000 and around $1.4m (£976,000) in consulting fees. The company is retaining Andersen for consulting purposes.

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