8-KOther Events

CMS ENERGY CORP 8-K Report (Apr 29, 2002)

Filed April 29, 2002For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) announced a significant change in its auditing firm, discontinuing its relationship with Arthur Andersen LLP as of April 22, 2002. This decision was made by the Boards of Directors of CMS Energy and Consumers Energy Company, upon the recommendation of their respective Audit Committees. The company is initiating a search for a new, nationally recognized independent auditor to replace Arthur Andersen for the fiscal year ending December 31, 2002. This change comes at a sensitive time, as Arthur Andersen was engaged to review the company's financial statements for the quarter ended March 31, 2002. Importantly, the filing states that there were no disagreements with Arthur Andersen regarding accounting principles, financial statement disclosures, or auditing procedures during the fiscal years 2000, 2001, and up to the date of the filing. Arthur Andersen has also agreed with the disclosures made in this filing.

Key Highlights

  • 1CMS Energy and Consumers Energy are changing their independent auditor, discontinuing services with Arthur Andersen LLP.
  • 2The decision was effective April 22, 2002, and was approved by the Boards of Directors and recommended by the Audit Committees.
  • 3A search for a new, nationally recognized auditing firm is underway to audit the company for the year ending December 31, 2002.
  • 4Arthur Andersen was engaged to review the company's financial statements for the quarter ended March 31, 2002.
  • 5The filing explicitly states there were no disagreements with Arthur Andersen on accounting, disclosure, or auditing matters.
  • 6Arthur Andersen has agreed with the statements made in CMS Energy's 8-K filing.
  • 7Representatives from Arthur Andersen will be invited to the Annual Shareholder Meeting on May 24, 2002.

Frequently Asked Questions

CMS Energy, along with Consumers Energy, decided to discontinue the use of Arthur Andersen LLP as their independent auditor for the fiscal year ending December 31, 2002. This decision was made by the Boards of Directors, upon the recommendation of the Audit Committees, and is part of a search for a new, nationally recognized auditing firm. The filing indicates no specific disagreements with Arthur Andersen on accounting or auditing matters.

No, the filing explicitly states that during the fiscal years ended December 31, 2001, and December 31, 2000, and through April 22, 2002, there were no disagreements with Arthur Andersen on any matter of accounting principle or practice, financial statement disclosure, or auditing scope or procedure. Arthur Andersen also agreed with the statements made in this filing.

CMS Energy's Audit Committee has been directed to search for a replacement independent auditor from among nationally recognized auditing firms and recommend such a firm to the Board for appointment as soon as practical. The goal is to have a new auditor in place to audit the company's financial statements for the year ending December 31, 2002.

The filing notes that Arthur Andersen's reports on the consolidated financial statements for the fiscal years ended December 31, 2001, and December 31, 2000, did not contain adverse opinions, disclaimers, or qualifications. The change in auditor is for future audits, and this 8-K filing does not retroactively change their previous audit opinions.