Why is American Express changing its auditor?

American Express is changing its auditor as part of a periodic review process mandated by its Audit Committee's charter, which requires a detailed review of the outside audit firm at least every ten years. The company conducted a robust proposal process, which led to the decision to engage PricewaterhouseCoopers LLP for future audits.

Will Ernst & Young LLP be involved in the upcoming audit for 2004?

Yes, Ernst & Young LLP will continue to serve as American Express Company's auditors for the fiscal year ending December 31, 2004. The transition to PricewaterhouseCoopers LLP will commence with the fiscal year ending December 31, 2005.

Were there any disagreements or issues with Ernst & Young LLP that led to this change?

No, the filing explicitly states that there were no disagreements with Ernst & Young LLP on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. Furthermore, there were no 'reportable events' during the past two fiscal years and through the reporting date.

How many firms were considered for the new auditor role?

The Audit Committee's decision followed a proposal process that included three of the four major international accounting firms, indicating a competitive and thorough selection process.

AXP 8-K: Financial Events

Summary

American Express Company (AXP) filed an 8-K on November 24, 2004, to announce a significant change in its independent auditor. The Audit Committee of the Board of Directors has approved the future engagement of PricewaterhouseCoopers LLP (PWC) as the company's auditor for the fiscal year ending December 31, 2005. This decision follows a comprehensive review process mandated by the Audit Committee's charter, which requires a review of the external audit firm at least every ten years. Ernst & Young LLP (E&Y) will continue to serve as the auditor for the fiscal year ending December 31, 2004. This transition represents a planned change driven by the Audit Committee's commitment to a thorough auditor evaluation. The company emphasized that the decision to switch auditors was made after a high-quality proposal process involving major accounting firms. Importantly, the filing states that there were no disagreements or reportable events with E&Y during the past two fiscal years (2002-2003) and up to the reporting date, indicating a smooth transition without accounting or auditing disputes.

Key Highlights

1American Express is changing its independent registered public accountants for the fiscal year ending December 31, 2005.
2PricewaterhouseCoopers LLP (PWC) will be engaged as the new auditor, replacing Ernst & Young LLP (E&Y).
3The decision was made by the Audit Committee of the Board of Directors following a review process required by the Audit Committee's charter.
4Ernst & Young LLP (E&Y) will continue to serve as the auditor for the fiscal year ending December 31, 2004.
5The change was part of a robust proposal process that included other major accounting firms.
6There were no disagreements with Ernst & Young LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing procedures during the past two fiscal years and up to the reporting date.
7No 'reportable events' occurred with Ernst & Young LLP during the two most recent fiscal years and through the reporting date.

AMERICAN EXPRESS CO 8-K Report, Auditor Change (Nov 24, 2004)

Summary

Key Highlights

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