01—Abstract
Summary
Summary of the 8-K filed May 9, 2006. Cited figures are marked; the original filing is the authoritative source.
Ecolab Inc. (ECL) filed a Form 8-K on May 8, 2006, to report a change in the independent auditor for its Ecolab Savings Plan and ESOP (the "Plan").
Effective May 5, 2006, the Plan Administrator dismissed PricewaterhouseCoopers LLP (PwC) as the Plan's auditor. It is important for investors to note that PwC continues to serve as the independent registered public accounting firm for Ecolab Inc. itself. The filing explicitly states that there were no disagreements or "reportable events" with PwC concerning accounting principles, financial statement disclosures, or auditing procedures during the relevant periods.
This indicates a smooth transition and no underlying accounting issues related to the Plan's prior audits. McGladrey & Pullen, LLP has been appointed as the Plan's new independent auditor, effective upon the finalization of an engagement agreement, and there have been no prior consultations with them on matters requiring disclosure.
02—Key points
Key Highlights
- Ecolab Inc. (ECL) announced a change in auditor specifically for its Savings Plan and ESOP, not for the parent company.
- PricewaterhouseCoopers LLP (PwC) was dismissed as the auditor for the Plan on May 5, 2006.
- PwC continues to serve as the independent auditor for Ecolab Inc. itself.
- The filing confirms no disagreements or reportable events with PwC during prior audit periods.
- McGladrey & Pullen, LLP has been appointed as the new independent auditor for the Plan.
- There were no prior consultations with McGladrey & Pullen, LLP on matters requiring disclosure under SEC regulations.
- A letter from PwC agreeing with the disclosures made by the Plan is filed as an exhibit.
03—Questions
Frequently Asked Questions
Did Ecolab Inc. change its corporate auditor?
No, this filing specifically addresses a change in the independent auditor for the Ecolab Savings Plan and ESOP. PricewaterhouseCoopers LLP (PwC) continues to be the independent registered public accounting firm for Ecolab Inc. itself.
What were the reasons for changing the auditor for the Plan?
The filing states that the Plan Administrator dismissed PwC. Crucially, it explicitly notes that there were no disagreements with PwC on any accounting principles, financial statement disclosures, or auditing matters, and no 'reportable events' as defined by SEC regulations. This suggests a change in auditor without any underlying accounting concerns related to PwC's prior work for the Plan.
Who is the new auditor for the Plan?
McGladrey & Pullen, LLP has been appointed as the Plan's independent auditor for the year ended December 31, 2005, effective upon the execution of an engagement agreement.
Are there any potential concerns for investors arising from this change?
Based on the information provided in the 8-K, there are no immediate concerns for investors. The lack of disagreements or reportable events with the outgoing auditor (PwC) and the confirmation that PwC still audits the parent company (Ecolab Inc.) suggest a routine change for the employee benefit plan, not an indicator of broader financial issues within Ecolab.
04—Continue