Summary
This Form 8-K filing from Occidental Petroleum Corporation (OXY) on June 12, 2002, primarily details a significant change in the independent auditors for its employee savings plans. The Occidental Petroleum Corporation Savings Plan (OPC Plan), along with its merged entities, the Occidental Chemical Corporation Savings and Investment Plan (OCC Plan) and the Oxy Vinyls, LP Savings Plan (OVLP Plan), has terminated its engagement with Arthur Andersen LLP as of June 10, 2002. Concurrently, KPMG LLP has been appointed as the new independent public accountants for these plans for fiscal year 2002 (and for OVLP for 2001-2002).
Key Highlights
- 1Occidental Petroleum's savings plans have changed independent auditors, moving from Arthur Andersen LLP to KPMG LLP.
- 2The change is effective June 10, 2002, for the Occidental Petroleum Corporation Savings Plan (OPC Plan) and its merged entities.
- 3Arthur Andersen's audit reports for prior years on OPC Plan and OCC Plan (2000-2001) and OVLP Plan (1999-2000) did not contain adverse opinions or qualifications.
- 4There were no disagreements with Arthur Andersen on accounting principles, financial disclosures, or auditing procedures during the relevant periods.
- 5No 'reportable events' as defined by SEC regulations occurred that would necessitate specific disclosures regarding Arthur Andersen's departure.
- 6The savings plans did not consult with KPMG LLP on any accounting principles or audit opinions prior to their appointment.
Frequently Asked Questions
Occidental Petroleum's Pension and Retirement Plan Administrative Committee decided to change auditors, moving from Arthur Andersen LLP to KPMG LLP. The filing does not specify the exact reasons but indicates no disagreements with Arthur Andersen on accounting or auditing matters.
This filing mainly impacts the governance and audit oversight of Occidental's employee savings plans. For investors in OXY's stock, it signals a routine change in accounting firms for benefit plans and confirms that Arthur Andersen's prior audits of these plans were without significant issues or disagreements.
This specific 8-K filing pertains to the savings plans (OPC Plan, OCC Plan, OVLP Plan), not the primary corporate financial statements of Occidental Petroleum Corporation. While Arthur Andersen was the auditor for the plans, the auditor for the parent company's financial statements is a separate matter, though the industry context of Arthur Andersen at the time (2002) was highly scrutinized due to the Enron and WorldCom scandals.
No, the filing explicitly states that there were no disagreements with Arthur Andersen on any matter of accounting principles, practices, financial statement disclosure, or auditing scope/procedure. There were also no 'reportable events' that would have caused Arthur Andersen to qualify their audit reports.