Why did Occidental Petroleum change its independent auditor?

Occidental Petroleum changed its independent auditor from Arthur Andersen LLP to KPMG LLP based on the recommendation of its Board's Audit Committee, effective March 22, 2002. The filing does not specify a reason beyond the Audit Committee's recommendation.

Were there any disagreements with Arthur Andersen that led to this change?

No, the filing explicitly states there were no disagreements with Arthur Andersen on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure during the past two fiscal years (2000-2001) and the subsequent interim period.

Does this auditor change indicate any financial irregularities at Occidental Petroleum?

Based on the information provided in this 8-K filing, there is no indication of financial irregularities. The company has stated there were no disagreements with its former auditor, Arthur Andersen, and no reportable events. The change was a decision made by the Audit Committee.

What is the significance of Arthur Andersen agreeing with Occidental Petroleum's disclosures?

Arthur Andersen's agreement, documented in a letter filed with the SEC, indicates that the former auditor concurs with Occidental Petroleum's description of the reasons for the auditor change and confirms the absence of any unresolved disputes or issues, which is standard procedure and provides transparency to investors.

OXY/OXY-WT 8-K SEC Disclosure

Summary

Occidental Petroleum Corporation (OXY) filed an 8-K on March 22, 2002, to announce a significant change in its independent auditor. Effective immediately, the company has transitioned from Arthur Andersen LLP to KPMG LLP as its principal accountant for the fiscal year 2002. This decision was made based on the recommendation of the Board's Audit Committee. The filing explicitly states that there were no disagreements with Arthur Andersen regarding accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years (2000-2001) and the subsequent interim period. Similarly, there were no reportable events as defined by SEC regulations. The company has provided Arthur Andersen with these disclosures, and Arthur Andersen has provided a letter agreeing with the statements made, which is attached as an exhibit. OXY also stated that it had not consulted with KPMG on any accounting matters prior to their engagement. This change in auditors, particularly at that time, may be of interest to investors given the broader context of accounting firm scrutiny.

Key Highlights

1Occidental Petroleum Corporation (OXY) has changed its independent auditor, moving from Arthur Andersen LLP to KPMG LLP.
2The change is effective March 22, 2002, with KPMG engaged for fiscal year 2002.
3The Board's Audit Committee recommended the change.
4There were no disagreements with Arthur Andersen on accounting principles, disclosures, or auditing procedures for fiscal years 2000 and 2001.
5No reportable events as defined by Regulation S-K occurred with Arthur Andersen.
6Arthur Andersen LLP has provided a letter confirming its agreement with OXY's disclosures regarding the auditor change.
7Occidental Petroleum had not consulted with KPMG on any accounting matters prior to this engagement.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report (Mar 22, 2002)

Summary

Key Highlights

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