Why is McDonald's Corporation filing an 8-K about its Profit Sharing and Savings Plan?

This 8-K filing is required under SEC regulations when a company's client-auditor relationship changes. In this case, it pertains to the Profit Sharing and Savings Plan, not the corporation directly, but it's important for transparency regarding the oversight of employee benefit plans.

Does the change in auditor suggest any problems with McDonald's financial reporting?

No, the filing explicitly states that the change in auditor was not due to any dissatisfaction with the professional services rendered by Ernst & Young LLP. There were also no disagreements on accounting principles or disclosures. This suggests a normal transition rather than a signal of financial issues.

What is the significance of the Plan consulting the new auditor before appointment?

The filing notes that the Plan did not consult Crowe Chizek and Company LLC on any matters prior to their appointment. This is significant because if they had, and the advice was critical to a decision, it might indicate the Plan was seeking a second opinion or addressing a specific issue. The absence of this consultation reinforces the idea of a straightforward auditor change.

MCD 8-K: Financial Events

Summary

This Form 8-K filing by McDonald's Corporation's Profit Sharing and Savings Plan announces a change in the plan's independent auditor. Effective February 28, 2007, the Plan terminated its relationship with Ernst & Young LLP and appointed Crowe Chizek and Company LLC as its new auditor, with the approval of the Plan's Administrative Committee. Crucially for investors, the filing explicitly states that this change was not a result of any dissatisfaction with Ernst & Young LLP's services. Furthermore, there were no disagreements on any accounting principles, financial statement disclosures, or auditing procedures during the period under review. This indicates a routine transition rather than a response to any underlying financial or auditing issues within the Plan.

Key Highlights

1McDonald's Corporation Profit Sharing and Savings Plan has changed its independent auditor.
2The new auditor appointed is Crowe Chizek and Company LLC.
3The previous auditor was Ernst & Young LLP.
4The change of auditor was approved by the Plan's Administrative Committee.
5The filing explicitly states the change was NOT due to dissatisfaction with Ernst & Young LLP's services.
6There were no disagreements with Ernst & Young LLP regarding accounting principles, disclosures, or auditing procedures in the past two fiscal years or subsequent interim periods.
7The Plan did not consult the new auditor, Crowe Chizek and Company LLC, on any matters prior to their appointment.

MCDONALDS CORP 8-K Report, Auditor Change (Mar 6, 2007)

Summary

Key Highlights

Frequently Asked Questions