Long-standing external auditor KPMG Ford, Rhodes and Thornton and Company has been shown the door whilst the Board has proposed to shareholders that Ernst & Young be appointed for the new financial year 2011/12 at the upcoming AGM.
In the 2010/11 Annual Report of Hayleys the Company had attributed the proposal for a new auditor to good corporate governance practices but analysts pinned the change as a direct fallout from the discovery of what is dubbed as the “biggest fraud” worth over Rs. 700 million in a listed manufacturing entity in Hayleys MGT, a subsidiary of Hayleys.
http://www.ft.lk/2011/06/14/external-auditor-shake-up-at-hayleys/