8-KOther Events

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report (Aug 11, 2004)

Filed August 11, 2004For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens Bancshares, Inc. (FCNCA) has filed an 8-K report to announce a significant change in its independent auditor. Effective August 4, 2004, the company's Audit Committee appointed Dixon Hughes PLLC as its new independent accountants, replacing KPMG LLP. This change comes after a long-standing relationship with KPMG, which has served as the company's auditor since 1991. The company has stated that the decision to dismiss KPMG LLP and appoint Dixon Hughes PLLC was made after the Audit Committee considered four accounting firms. Importantly, there have been no disagreements or "reportable events" with KPMG LLP concerning accounting principles, financial statement disclosures, or auditing procedures during their tenure or leading up to the dismissal. KPMG's audit reports for the years ended December 31, 2002, and 2003, did not contain adverse, disclaimed, qualified, or modified opinions, other than a standard disclosure regarding the adoption of new accounting standards for goodwill and intangible assets (SFAS 142 and 147).

Key Highlights

  • 1First Citizens Bancshares, Inc. is changing its independent auditor from KPMG LLP to Dixon Hughes PLLC, effective August 4, 2004.
  • 2Dixon Hughes PLLC has been appointed to audit the company's consolidated financial statements for the fiscal year 2004.
  • 3KPMG LLP had served as the company's independent accountants since 1991.
  • 4The Audit Committee considered four accounting firms, including KPMG LLP, before making the appointment.
  • 5There were no disagreements with KPMG LLP on any accounting principles, financial statement disclosures, or auditing procedures.
  • 6No 'reportable events' requiring disclosure were noted with KPMG LLP.
  • 7KPMG LLP's prior audit reports (2002-2003) were unqualified, with a standard note on the adoption of SFAS 142 and 147.

Frequently Asked Questions

The company's Audit Committee appointed Dixon Hughes PLLC as its new independent accountants after considering four firms, including the outgoing auditor, KPMG LLP. This decision was made by the Audit Committee and does not appear to be driven by any disagreements or audit issues.

No, the filing explicitly states there were no disagreements with KPMG LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure. Additionally, there were no 'reportable events' requiring disclosure, and KPMG's audit reports for the past two years were unqualified.

These are references to Statement of Financial Accounting Standards. SFAS 142, 'Goodwill and Other Intangible Assets,' and SFAS 147, 'Acquisitions of Certain Financial Institutions,' were adopted by the company effective January 1, 2002. This was a standard disclosure in KPMG's audit reports for the years ended December 31, 2002, and 2003, indicating the company's implementation of these new accounting rules.

The Audit Committee is responsible for appointing the company's independent accountants. In this case, the Audit Committee made the decision to dismiss KPMG LLP and appoint Dixon Hughes PLLC following a review process.