8-KOther Events

CME GROUP INC. 8-K Report (Mar 28, 2002)

Filed March 28, 2002For Securities:CME

Summary

CME Group Inc. (CME) filed an 8-K report on March 28, 2002, to announce a significant change in its independent auditor. The Board of Directors, following the recommendation of its Audit Committee, decided to replace Arthur Andersen LLP as the company's independent public accountants. This decision was made on March 21, 2002. A new auditor has not yet been formally engaged, and Arthur Andersen will continue to serve in its capacity until a replacement is identified and retained. Importantly, the filing states there were no disagreements between CME Holdings and Arthur Andersen regarding accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years or up to the reporting date. Arthur Andersen's audit reports for the years ended December 31, 2001, and 2000, were without adverse opinions, disclaimers of opinion, or qualifications. This transition occurs during a period of heightened scrutiny for Arthur Andersen, which was Enron's auditor and facing its own legal challenges at the time.

Key Highlights

  • 1CME Holdings is changing its independent auditor, replacing Arthur Andersen LLP.
  • 2The decision was made by the Board of Directors based on the Audit Committee's recommendation on March 21, 2002.
  • 3A new independent accounting firm has not yet been engaged.
  • 4Arthur Andersen will continue as auditor until a replacement is appointed.
  • 5There were no disagreements with Arthur Andersen on accounting principles, disclosures, or auditing procedures.
  • 6Arthur Andersen's prior audit reports for 2000 and 2001 were clean, with no adverse opinions or qualifications.

Frequently Asked Questions

The 8-K filing states that the Board of Directors, upon the recommendation of its Audit Committee, decided to replace Arthur Andersen LLP as the company's independent public accountants. The specific reasons beyond this recommendation are not detailed in this filing.

No, as of the filing date of March 27, 2002, a new firm of independent public accountants had not yet been engaged to serve as CME Holdings' auditors. The company is in the process of identifying and retaining a replacement.

No, the filing explicitly states that there were no disagreements between CME Holdings and Arthur Andersen on any matter of accounting principles, financial statement disclosure, or auditing scope or procedure during the two most recent fiscal years ended December 31, 2001, and through the date of the report.

It means that Arthur Andersen's audit reports for CME Holdings' financial statements for the years ended December 31, 2001, and 2000, did not contain any adverse opinions (stating the financial statements are not presented fairly), disclaimers of opinion (refusing to offer an opinion), or qualifications (limiting the scope of their opinion or noting exceptions to accounting principles used).