Summary
Cummins Inc. (CMI) has filed an 8-K report on June 5, 2002, detailing a significant change in their independent auditors for employee benefit plans. The company has replaced Arthur Andersen LLP with Deloitte & Touche LLP as the independent public accountants for the Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plans, effective May 28, 2002. This change specifically pertains to the plans' fiscal year 2001 audit. The report clarifies that the prior auditor, Arthur Andersen, had no disagreements with Cummins on any accounting principles, financial statement disclosures, or auditing procedures during the relevant periods (fiscal years 2000 and 1999, and the interim period up to June 15, 2001). Furthermore, no reportable events, as defined by SEC regulations, occurred. The reason cited for the inability to obtain a formal agreement letter from Andersen is the termination of employment of the entire Andersen audit team assigned to the plans. The filing also states that there were no consultations with Deloitte & Touche LLP prior to their engagement on matters that would be considered disagreements or reportable events.
Key Highlights
- 1Cummins Inc. (CMI) is changing its independent auditor for employee benefit plans.
- 2Arthur Andersen LLP has been replaced by Deloitte & Touche LLP.
- 3The change is effective May 28, 2002, and applies to the fiscal year 2001 audit of the Retirement and Savings Plans.
- 4No disagreements on accounting principles, disclosures, or auditing procedures existed with Arthur Andersen.
- 5No reportable events occurred with the prior auditor.
- 6The departure of Andersen's audit team is the stated reason for not obtaining a formal agreement letter.
- 7No prior consultations with Deloitte & Touche LLP on contentious accounting matters occurred.