Summary
Cadence Design Systems, Inc. (CDNS) announced a significant change in its auditing firm on March 22, 2002. The company has decided not to renew its engagement with Arthur Andersen LLP and has instead appointed KPMG LLP as its independent auditors for the fiscal year ending December 28, 2002. This change is effective immediately, with the Board of Directors, upon recommendation from the Audit Committee, making the decision. Investors should note that this is a routine change in auditors and, according to the filing, there were no disagreements with Arthur Andersen LLP on any accounting principles, disclosures, or auditing procedures. The previous audit reports from Arthur Andersen LLP were unqualified. While no prior consultations with KPMG LLP on specific accounting matters are disclosed, the transition to a new audit firm is a common occurrence for publicly traded companies. The company has provided a letter from Arthur Andersen LLP as Exhibit 16.1, confirming the nature of the change.
Key Highlights
- 1Cadence Design Systems, Inc. is changing its independent registered public accounting firm.
- 2Arthur Andersen LLP will not be reappointed as Cadence's auditor for the fiscal year ending December 28, 2002.
- 3KPMG LLP has been appointed as the new independent auditor for the fiscal year ending December 28, 2002.
- 4The decision to change auditors was made on March 22, 2002, by the Board of Directors, on the Audit Committee's recommendation.
- 5There were no disagreements between Cadence and Arthur Andersen LLP on accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years or subsequent interim period.
- 6Arthur Andersen LLP's audit reports for the last two fiscal years were unqualified.
- 7A letter from Arthur Andersen LLP regarding the change is filed as Exhibit 16.1.