8-KFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Auditor Change (Dec 13, 2018)

Filed December 13, 2018For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced on December 13, 2018, a change in its independent registered public accounting firm, effective December 7, 2018. The company's Audit Committee dismissed PricewaterhouseCoopers LLP (PwC) and subsequently engaged Ernst & Young LLP (EY) as its new independent auditor for the fiscal year ending September 30, 2019. This change was a result of a competitive request for proposal process. The company explicitly stated that the dismissal of PwC was not due to any disagreements on accounting principles, financial statement disclosure, or auditing procedures, nor were there any reportable events. PwC's reports for fiscal years 2017 and 2018 contained no adverse opinions or modifications. The company also confirmed that it did not consult with EY on any significant accounting or auditing matters prior to their engagement.

Key Highlights

  • 1D.R. Horton (DHI) dismissed PricewaterhouseCoopers LLP (PwC) as its independent auditor.
  • 2Ernst & Young LLP (EY) has been appointed as the new independent registered public accounting firm.
  • 3The change in auditor was effective December 7, 2018.
  • 4The company stated there were no disagreements with PwC on accounting or auditing matters.
  • 5PwC's previous audit reports for fiscal years 2017 and 2018 were unqualified.
  • 6The decision to change auditors followed a competitive request for proposal process by the Audit Committee.
  • 7DHI confirmed no prior consultations with EY on significant accounting issues before their appointment.

Frequently Asked Questions

D.R. Horton changed its independent registered public accounting firm as a result of a competitive request for proposal process undertaken by its Audit Committee. The company explicitly stated that the decision was not due to any disagreements with the former auditor, PricewaterhouseCoopers LLP (PwC), on accounting principles, financial statement disclosure, or auditing scope or procedure.

No, the company stated that the reports of PricewaterhouseCoopers LLP on D.R. Horton's financial statements for the fiscal years ended September 30, 2018, and 2017, did not contain any adverse opinion, disclaimer of opinion, or were qualified or modified in any way regarding uncertainty, audit scope, or accounting principles.

For investors, this type of change, when not driven by disagreements or adverse findings, often indicates a routine review of audit services, possibly seeking competitive terms or a fresh perspective. The absence of stated disagreements is a positive sign, suggesting continuity and no underlying accounting concerns that led to the change.

No, D.R. Horton confirmed that neither the company nor anyone on its behalf consulted with Ernst & Young LLP regarding the application of accounting principles to any specific transaction or the type of audit opinion that might be rendered, nor did EY provide advice that was considered a significant factor in the company's accounting or reporting decisions.