Summary
Marriott International, Inc. (MAR) filed an 8-K report on May 3, 2002, to announce a significant change in its independent auditors. Effective immediately, the Board of Directors, upon recommendation from the Audit Committee, has dismissed Arthur Andersen LLP and appointed Ernst & Young LLP as the new independent auditors for the fiscal year ending January 3, 2003. This change in auditors is a key event for investors, particularly given the context of Arthur Andersen's ongoing legal and operational challenges at the time. The filing clarifies that the decision was not due to any disagreements on accounting principles or financial statement disclosures. The company has provided Arthur Andersen with a copy of these disclosures, and Arthur Andersen has agreed with the statements made.
Key Highlights
- 1Marriott International has appointed Ernst & Young LLP as its new independent auditor, replacing Arthur Andersen LLP.
- 2The change in auditors is effective immediately as of May 3, 2002.
- 3The Board of Directors made the decision based on a recommendation from the Audit Committee.
- 4There were no disagreements with Arthur Andersen on any matters of accounting principle, financial statement disclosure, or auditing procedures during the past two fiscal years or up to the report date.
- 5No reportable events (as defined by Regulation S-K) occurred that would have prompted the change or required Arthur Andersen to make a reference in their reports.
- 6Marriott International did not consult with Ernst & Young regarding accounting principles or audit opinions prior to their appointment.
- 7The filing includes Exhibit 16, a letter from Arthur Andersen LLP confirming their agreement with Marriott's disclosures, and Exhibit 99, a press release dated May 3, 2002.