Why is Air Products changing its independent auditor from Arthur Andersen to KPMG?

The 8-K filing states that the Board of Directors, upon the recommendation of the Audit Committee, decided to no longer engage Arthur Andersen LLP and has engaged KPMG LLP as their independent public accountants for the fiscal year ending September 30, 2002. The filing does not provide specific reasons beyond this decision-making process.

Were there any disagreements with Arthur Andersen that led to this change?

No, the filing explicitly states that during Air Products' two most recent fiscal years and through the date of this Form 8-K, there were no disagreements with Arthur Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

Has Air Products consulted with KPMG before this engagement?

No, the filing indicates that Air Products did not consult with KPMG LLP with respect to the application of accounting principles to any specified transaction, the type of audit opinion that might be rendered, or any other reportable events during the two most recent fiscal years and through the date of this filing.

What does the letter from Arthur Andersen signify?

The letter from Arthur Andersen, attached as Exhibit 16, signifies their agreement with the disclosures made by Air Products in this Form 8-K regarding the change in auditors. This is a standard procedure to ensure accuracy and transparency in the auditor change announcement.

APD 8-K SEC Disclosure — May 10, 2002

Summary

This 8-K filing from Air Products & Chemicals, Inc. (APD) on May 10, 2002, primarily announces a significant change in their independent auditors. The Board of Directors, upon recommendation from the Audit Committee, has decided to dismiss Arthur Andersen LLP and engage KPMG LLP as their independent auditor for the fiscal year ending September 30, 2002. This change in auditors, particularly in the context of the time, is a key event for investors. The filing explicitly states there were no disagreements on accounting principles or financial disclosure issues with Arthur Andersen during the past two fiscal years. Furthermore, Air Products did not consult with KPMG on any accounting matters prior to this engagement. Investors should note that the company has provided Arthur Andersen with the disclosure and received an agreement letter, indicating transparency in the transition.

Key Highlights

1Air Products & Chemicals, Inc. is changing its independent auditor.
2Arthur Andersen LLP has been dismissed as the independent auditor.
3KPMG LLP has been engaged as the new independent auditor for fiscal year 2002.
4The decision was made by the Board of Directors based on the Audit Committee's recommendation.
5There were no reported disagreements with Arthur Andersen regarding accounting principles, financial disclosure, or auditing procedures in the past two fiscal years.
6Air Products did not consult with KPMG LLP on accounting matters prior to this engagement.
7The filing includes an agreement letter from Arthur Andersen LLP.

Air Products & Chemicals, Inc. 8-K Report (May 10, 2002)

Summary

Key Highlights

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