* READER'S DIGEST ENGAGES E&Y: Publishing giant Reader's Digest Association hired Ernst & Young as its new auditor for its fiscal year ending June 30, 2006.Ernst succeeds Big Four firm KPMG as Reader's Digest's new independent accountant.

According to a federal filing, KPMG declined to stand for re-election. However, Pleasantville, N.Y.-based RDA reported no disagreements with its former auditor on matters of accounting principles.

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