Rupert Murdoch’s News Corp. on Tuesday became the second major media conglomerate to pledge not to use its auditor Andersen for consulting services, following a similar statement by rival Walt Disney Co. late last month.
Andersen’s credibility was damaged after it admitted some of its partners had destroyed documents related to the audit of collapsed Enron Corp.
News Corp.’s chief financial officer, David DeVoe, told reporters Tuesday the company has used Andersen as its auditor since 1990 and for limited consulting work.
“Going forward, the audit committee and Rupert have decided not to engage Arthur Andersen to perform any consulting,” DeVoe said.
Separately, SunTrust Banks Inc. said its board of directors decided Tuesday to dump Andersen as its auditor after a 60-year relationship.
SunTrust began reviewing its auditing account in April, and the decision was not a direct result of Andersen’s work for Enron, company spokesman Mike McCoy said.
