8-KOther Events

GENERAL ELECTRIC CO 8-K Report (Jul 7, 2004)

Filed July 7, 2004For Securities:GE

Summary

This 8-K filing from General Electric Company (GE) primarily concerns a change in the independent auditors for the ITI 401(k) Plan. GE has appointed KPMG LLP to audit the Plan's financial statements for the year ended December 31, 2003, following the prior acquisition of Instrument Transformers, Inc. The previous auditor, Spence, Marston, Bunch, Morris & Co. (Spence Marston), was dismissed. Investors should note that while the dismissal of Spence Marston is routine and follows an acquisition, there were no disagreements on accounting principles or auditing matters. However, the prior auditor's report for the year ended December 31, 2001, was a limited scope audit where an opinion was disclaimed due to significant unaudited investment information certified by the Trustee. The engagement of KPMG for the 2003 audit marks a new auditor for the plan's financial statements.

Key Highlights

  • 1GE has appointed KPMG LLP as the new independent auditor for the ITI 401(k) Plan's 2003 financial statements.
  • 2The change in auditors is related to GE's prior acquisition of Instrument Transformers, Inc.
  • 3The previous auditor, Spence, Marston, Bunch, Morris & Co., has been dismissed.
  • 4There were no disagreements on any matters of accounting principles, practices, financial statement disclosure, or auditing scope/procedure with the dismissed auditor.
  • 5The auditor's report for the ITI 401(k) Plan for the year ended December 31, 2001, was a limited scope audit, and an opinion was disclaimed due to unaudited investment data certified by the Trustee.
  • 6The ITI 401(k) Plan did not consult with KPMG LLP on any accounting or auditing matters prior to their engagement for the 2003 audit.

Frequently Asked Questions

The change in auditors is a direct consequence of GE's prior acquisition of Instrument Transformers, Inc. As part of integrating the acquired entity, GE has appointed KPMG LLP to audit the ITI 401(k) Plan's financial statements for the year ended December 31, 2003.

No, the filing explicitly states that there were no disagreements with Spence Marston on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

For the year ended December 31, 2001, the audit of the ITI 401(k) Plan's financial statements was conducted under a limited scope as permitted by the Department of Labor. Spence Marston disclaimed an opinion on these financial statements because a significant portion, specifically the investments and investment earnings, were certified by the Trustee (Franklin Templeton) and were not subject to audit procedures.

No, the filing indicates that the ITI 401(k) Plan did not consult with KPMG LLP on any accounting or auditing matters during the years ended December 31, 2002, and 2001, or up to the date of their engagement for the 2003 audit.