News Corp, Fox dump Andersen

ANDERSEN has been sacked as auditor by Rupert Murdoch's News Corporation and its US subsidiary Fox Entertainment in the accountant's highest-profile global client defection since the Enron collapse.

The Australian Securities and Investment Commission yesterday granted News Corp permission to replace Andersen, citing the 'uncertain future of Andersen's international structure'. It added: 'The application by News Corporation was made in response to the increasing unlikelihood that Andersen can continue to provide effective global audit services to the News Corporation group.'

Big Five rival Ernst & Young, which is merging with Andersen in Australia and New Zealand, has been appointed to replace Andersen for the financial year ending on 30 June. In a statement to the Australian Stock Exchange today, News Corp said the decision to replace Andersen was not the result of any disagreement with the company on its previous auditing of its accounts.

News Corp dropped Andersen from all consulting roles in February and said that it would 'closely monitor the outcome of any various proceedings' in which the firm was involved.