Atlanta stock falls 19.97% after Price Waterhouse quits as auditor

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Atlanta stock falls 19.97% after Price Waterhouse quits as auditor

The Atlanta stock fell in trade today after Price Waterhouse (PW), a network firm of PwC India quit as an auditor of the construction firm raising concerns around the finances of the company.

At 14:46 pm, the stock was trading 19.97% or 12.75 points lower at 51.10 on BSE. The stock is down 54.80 percent during the last one year. It has fallen 56.55% since the beginning of this year. It closed at 63.85 level on the BSE yesterday.

The auditor in its resignation letter said, "In the absence of adequate and relevant information and explanations, and considering the nature of the observations made by the tax authorities, the fundamental objective of an audit which is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements, in our assessment cannot be achieved, both in reference to the aforesaid observations and otherwise."

PW said the firm did not share "significant information" and "significant observations by tax authorities" as requested. This is the third such instance this year of an auditor resignation citing lack of key financial information or concerns over books of accounts.

On April 28, 2018, Price Waterhouse quit as an auditor of technology firm Vakrangee flagging concerns to the corporate affairs ministry about the books of accounts, mainly related to its bullion and jewellery business, even as the company denied any irregularities.

On Sunday, May 27, fruit juice manufacturer Manpasand Beverages informed the exchanges that its statutory auditor Deloitte Haskins & Sells resigned ahead of a board meeting scheduled on May 30 for consideration of financial results. Due to sudden resignation of existing auditors, the business to be transacted at board meeting scheduled on May 30 has been cancelled, it added.

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