Summary
Comfort Systems USA, Inc. (FIX) announced a significant change in its independent auditor on May 30, 2002, with an effective date of May 24, 2002. The company's Audit Committee and Board of Directors decided to dismiss Arthur Andersen LLP and appoint Ernst & Young LLP as its new independent public accountants for 2002. This transition involved no disagreements with Arthur Andersen regarding accounting principles, financial statement disclosures, or auditing procedures, and no reportable events that would necessitate disclosure in Arthur Andersen's reports.
Key Highlights
- 1Comfort Systems USA, Inc. is changing its independent auditor from Arthur Andersen LLP to Ernst & Young LLP.
- 2The change is effective May 24, 2002.
- 3The decision was made by the Audit Committee and approved by the Board of Directors.
- 4Arthur Andersen's reports for the past two years did not contain any adverse, disclaimed, qualified, or modified opinions.
- 5There were no disagreements with Arthur Andersen on accounting principles, financial statement disclosures, or auditing procedures during the recent fiscal years or up to the date of change.
- 6There were no "reportable events" as defined by SEC regulations that would have caused Arthur Andersen to reference them in their reports.
- 7The company did not consult with Ernst & Young LLP on any accounting principles, audit opinions, or reportable events prior to their appointment.
Frequently Asked Questions
The company's Audit Committee and Board of Directors decided to transition their independent public accountants from Arthur Andersen LLP to Ernst & Young LLP, effective May 24, 2002. The filing does not specify a reason beyond this decision.
No, the filing explicitly states that there were no disagreements with Arthur Andersen on any matters of accounting principles, practices, financial statement disclosures, or auditing procedures during the company's two most recent fiscal years and through May 24, 2002. Arthur Andersen's reports were also not qualified or modified.
According to the filing, Comfort Systems USA, Inc. did not consult with Ernst & Young LLP regarding any specific accounting transactions, the type of audit opinion, or any other reportable events prior to their appointment as the new independent accountants.
For investors, this change signifies a transition in the oversight of the company's financial reporting. The lack of reported disagreements with the outgoing auditor, Arthur Andersen, suggests the change is not driven by significant audit issues. Investors should monitor the initial reports and communications from Ernst & Young LLP with the company.