Summary
This Form 8-K filing by D.R. Horton, Inc. (DHI) on June 10, 2008, primarily announces a change in its principal independent registered public accounting firm. The company's Audit Committee decided to dismiss Ernst & Young LLP (E&Y) and engage PricewaterhouseCoopers LLP (PwC) as its new independent auditor for the fiscal year ending September 30, 2008. The change was the result of a competitive request for proposal process. Importantly, the filing states that there were no disagreements or reportable events with E&Y during the relevant periods, indicating a smooth transition. Investors should note this change as it signifies a shift in the company's auditing relationship, which is a standard corporate governance practice.
Key Highlights
- 1D.R. Horton, Inc. (DHI) has changed its independent registered public accounting firm.
- 2Ernst & Young LLP (E&Y) has been dismissed as the company's auditor.
- 3PricewaterhouseCoopers LLP (PwC) has been engaged as the new independent auditor for fiscal year 2008.
- 4The decision to change auditors was made by the Audit Committee following a competitive request for proposal process.
- 5There were no disagreements with E&Y on any accounting principles, practices, financial statement disclosures, or auditing scope.
- 6No 'reportable events' as defined by Regulation S-K occurred with E&Y during the specified periods.
- 7A letter from Ernst & Young LLP confirming agreement with the disclosures in this filing is attached as Exhibit 16.1.
Frequently Asked Questions
D.R. Horton's Audit Committee initiated a competitive request for proposal process, which led to the decision to change its principal independent registered public accounting firm. This process is a standard corporate governance practice to ensure the company has the best auditing services.
No, the filing explicitly states that there were no disagreements with Ernst & Young LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. Furthermore, there were no 'reportable events' as defined by Regulation S-K.
A change in auditors, while common, is a material event for investors. It signifies a fresh perspective on the company's financial reporting and internal controls. The lack of disagreements with the former auditor suggests a smooth transition and no underlying financial issues that prompted the change.
PricewaterhouseCoopers LLP has been engaged to serve as the company's independent registered public accounting firm for the Company's fiscal year ending September 30, 2008.