The setback follows the Chinese timber company’s attainment of creditor protection last week, as it continues to sell off most of its assets.
An Ernst & Young spokeswoman said the resignation came after Sino-Forest’s filing for creditor protection and an announcement that the company is still unable to resolve issues related to its 2011 annual financial statements.
Additional information on Ernst & Young’s resignation will be made public in compliance with securities regulations.
Muddy Waters, a China-based due diligence group, issued a report in June 2011 that alleged Sino-Forest had falsely exaggerated the value of its land assets.
Trading halted in August, when the timber group’s stock value fell below C$5, from over C$20 prior to the report’s publication.