Radio New Zealand - Te Reo Irirangi o Aotearoa

KPMG quits as Pyne Gould's auditor

Updated at 2:02 pm on 1 May 2012

Accounting firm KPMG has resigned as the auditor of Pyne Gould Corporation, expressing concerns about the listed company's accounts.

Pyne Gould Corporation says KPMG resigned because of differences over whether some transactions should be considered related party transactions, as well as concerns about governance and management of financial reporting.

The company strongly rejectes the accounting firm's claims, and indicated it may take some type of action against KPMG.

Pyne Gould Corporation is 76% controlled by George Kerr and US investment firm Baker Street Capital.

In the past, some shareholders have queried the link between Mr Kerr and Pyne Gould Corporation's investments in some of Mr Kerr's schemes, including investment firms Epic and Torchlight.

At last year's annual meeting, there was a call for a review of Mr Kerr's interests in the company to restore trust.

Pyne Gould Corporation calls it a technical impasse saying its own professional advice differed from KPMG.

The company offered to publish KPMG's view if the issue couldn't be resolved by the time the accounting firm carried out the audit of the June year's accounts, which is the usual solution.

That does not appear to have satisfied KPMG, though has refused to comment citing client confidentiality.

Pyne Gould Corporation chairman Bryan Mogridge did not return calls, but the company did say it takes the untimely resignation of KPMG very seriously, and has reserved its rights accordingly.

The company said its central accounting function is now being carried out by Deloitte and it aims to appoint a replacement auditor as soon as possible.

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