News Corp sacks Andersen as auditor

LONDON - News Corporation, the international media company run by Rupert Murdoch, has sacked its auditor Andersen after it was disgraced because of its part in the collapse of Enron.

Murdoch took the decision to relieve the accounting firm of its auditing responsibilities at News Corp, and its US broadcaster Fox, after it was granted permission by the Australian Securities and Investment Comission yesterday.

News Corp cited the "uncertain future of Andersen's international structure" as it reason for wanting to replace the firm.

It said in a statement: "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."

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

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