In a surprise move, auditors KPMG resigned yesterday from auditing the books of Pyne Gould Corp - whose group managing director is southern businessman George Kerr - over recognition of "related party transactions".
In a brief statement to the NZX yesterday, Pyne Gould Corp (PGC) said the pair had "unresolved differences" whether certain transactions should be disclosed as related party transactions, and also concerns over the adequacy of governance and management of financial reporting.
PGC "strongly rejects" the KPMG claims, the company said.
PGC said it took the "untimely resignation" of KPMG seriously and would appoint a replacement auditor "as soon as possible".
PGC said it had differing advice to KPMG on "disclosure matters" and in an attempt to resolve the "technical impasse" had offered to publish KPMG's views, even if the "unresolved differences" still remained.
Last week, Mr Kerr replaced John Duncan, whose resignation was effected immediately, as managing director.
