LIGAND, DELOITTE TO PART COMPANY: Ligand Pharmaceuticals Inc., a developer and marketer of drugs to treat cancer, skin diseases and hormone-related diseases, said that Big Four firm Deloitte & Touche, its auditor of four years, will resign.
Last month, D&T told Ligand of its resignation plans effective upon the filing of Ligand’s 10-Q for the period ended June 30, 2004.
Ligand said that its audit committee has begun the process of selecting a replacement for its fiscal year ending Dec. 31, 2004.
The company said that there were no reported disagreements with Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
GADZOOKS DISMISSES PWC: Specialty clothing retailer Gadzooks Inc. has dismissed auditor PricewaterhouseCoopers, according to an 8-K filed with the Securities and Exchange Commission.
It has subsequently retained BDO Seidman as its replacement auditor.
Dallas-based Gadzooks said that it didn’t have any disagreements with the Big Four firm, but disclosed that the audit reports contained an explanatory paragraph that raised substantial doubt about the ability of the company to continue as a going concern.
ERNST & YOUNG ENDS RELATIONSHIP WITH PHOTOWORKS: Big Four firm Ernst & Young said that it would sever its auditor-client relationship with Seattle-based PhotoWorks.
E&Y said that it would exit the relationship following the release of its report on PhotoWorks’ financials for the year ending Sept. 25.
No reason was given for the resignation.
PhotoWorks said that the company didn’t have any disagreement with E&Y over any matter of accounting principles or practices during the last two fiscal years.
KPMG TO RESIGN CORIO: Big Four firm KPMG will resign as auditor to application services provider Corio Inc., according to a federal filing.
An 8-K filed with the Securities and Exchange Commission said that the auditor identified a number of reportable conditions, including an understaffed accounting department, late reconciliation of bank statements and inappropriate review of journal entries.
The company’s audit committee did not name a replacement.
