Adler - comment

Precedent is playing out in Germany as the court of Charlottenburg has (tastefully) appointed KPMG as Auditor of Adler Real Estate. Since the establishment of Audit in Germany in 1931, no going concern has ever failed to attract an auditor. If this plays out, then that establishes a risk for Auditors that they may be court-ordered to audit a company against their will. The final word is not spoken in the matter and the appointment is therefore worded such that it requires KPMG’s acceptance. Regardless, we wonder how practical the idea is in the first place. All KPMG would have to do is work really slowly to cause Adler to look elsewhere again.