New auditor for Carter Holt

By IRENE CHAPPLE

Carter Holt Harvey is today expected to appoint Deloitte Touche Tohmatsu as its second auditor, following Andersen's merger with Ernst & Young.

Carter Holt Harvey's $1.5 million audit fee was previously split between Andersen, which focused on the pulp and paper auditing, and Ernst & Young, which did forestry.

Andersen New Zealand quit its global affiliation last month as the United States offices fought criminal indictments over their involvement in the Enron bankruptcy.

On April 9, Carter Holt Harvey's parent company in the United States, International Paper, dropped Andersen as its auditor and appointed Deloittes.

International Paper was the firm's seventh-largest client and paid about US$22.8 million in auditing, consulting and other fees last year.

Carter Holt Harvey is understood to have made the change to remain consistent with International Paper and to implement a double check system on its accounting.

The type of work given to the firms is yet to be decided.

Ernst & Young partner Wayne Jackson said no clients had yet been lost from the merger.

However, loss was expected as the so-called "proxy season" when annual meetings were held in the US.