KPMG has ditched German real estate giant Adler as an audit client less than an hour after the company told investors it was in “very professional discussions” with the accountancy firm.
In February, KPMG refused to sign off Adler’s 2021 financial report, saying it had been refused access to crucial documents. The announcement sent Adler’s share price down 45% in a day.
On Tuesday, Adler Group shares lost 12.5% to reach €5.09, an all-time low.
That morning Adler’s chair Stefan Kirsten said the company wished to keep KPMG as auditor and would “take all steps” to resolve questions on the 2021 audit as soon as possible and receive an unqualified audit for its 2022 results.
Hours later, it disclosed that it had been informed by KPMG that morning “that they are not available as auditors to Adler Group in the future”. The company said it had started the search for a new auditor “immediately” but would not be able to name one in documentation ahead of its annual general meeting, which is scheduled for 29 June.
In a letter to investors, Kirsten said KPMG’s move was “a great surprise”, that was “disappointing” and “irritating”. He said he “misjudged KPMG’s clear indications of a continuation of the co-operation”, adding he had assumed KPMG’s ongoing work for Adler was “certain” until the firm told it otherwise.
