8-KOther Events

CENTENE CORP 8-K Report (Jun 20, 2002)

Filed June 20, 2002For Securities:CNC

Summary

Centene Corporation (CNC) announced a significant change in its independent auditor on June 18, 2002. The company's board of directors, following a recommendation from its Audit Committee, dismissed Arthur Andersen LLP and immediately engaged PricewaterhouseCoopers LLP as its new independent public accountants for the fiscal year ending December 31, 2002. This change in auditors, particularly the dismissal of Arthur Andersen, is a notable event for investors given the ongoing scrutiny and issues surrounding Arthur Andersen at the time. Centene has stated that the dismissal was not due to any disagreements on accounting principles or financial statement disclosures. The company also confirmed no prior consultations with PricewaterhouseCoopers regarding accounting matters.

Key Highlights

  • 1Centene Corporation (CNC) has changed its independent auditor.
  • 2Arthur Andersen LLP has been dismissed as the company's independent public accountants.
  • 3PricewaterhouseCoopers LLP has been engaged as the new independent auditor, effective immediately.
  • 4The change applies to the fiscal year ending December 31, 2002.
  • 5Centene states there were no disagreements with Arthur Andersen on any accounting or auditing matters.
  • 6There were no prior consultations with PricewaterhouseCoopers regarding accounting principles or audit opinions.
  • 7The company has provided Arthur Andersen with a copy of the statements regarding the dismissal, and Arthur Andersen has agreed with these statements.

Frequently Asked Questions

Centene's board of directors, upon the recommendation of its Audit Committee, dismissed Arthur Andersen LLP and engaged PricewaterhouseCoopers LLP. The company has stated that this decision was not a result of any disagreements on accounting principles, financial statement disclosures, or auditing procedures.

Centene has explicitly stated that during its fiscal years ended December 31, 2001 and 2000, and through the date of the report, 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 has also agreed with these statements.

No, Centene has stated that during the years ended December 31, 2001 and 2000, and through the date of the report, they did not consult with PricewaterhouseCoopers with respect to the application of accounting principles to any specified transaction, the type of audit opinion that might be rendered, or any other reportable events.

In 2002, Arthur Andersen LLP was facing significant legal and reputational challenges related to the Enron scandal. For Centene, switching auditors away from Arthur Andersen at this time likely aimed to ensure auditor independence and maintain investor confidence in the integrity of its financial reporting, especially as Arthur Andersen's viability as an auditing firm was in question.