01—Abstract
Summary
Summary of the 8-K filed January 19, 2006. Cited figures are marked; the original filing is the authoritative source.
This Form 8-K filing by The Procter & Gamble Company (PG) reports a change in the independent registered public accounting firm for two specific Gillette employee plans: The Gillette Company Global Employee Stock Ownership Plan and The Gillette Company Employees' Savings Plan.
Effective January 19, 2006, Plante & Moran PLLC has been appointed as the new auditor, replacing KPMG LLP. This change follows the recent merger between Procter & Gamble and The Gillette Company. Importantly, this change in auditors pertains only to these two Gillette employee plans and does not affect the principal independent auditor for Procter & Gamble's consolidated financial statements.
The filing explicitly states that there were no disagreements with the outgoing auditor, KPMG, regarding accounting principles, financial statement disclosures, or auditing procedures for the Gillette Plans. KPMG has also provided a letter confirming their agreement with these statements.
02—Key points
Key Highlights
- Change of Independent Auditor for Specific Gillette Employee Plans: Plante & Moran PLLC replaces KPMG LLP for The Gillette Company Global Employee Stock Ownership Plan and The Gillette Company Employees' Savings Plan.
- Timing Coincides with P&G/Gillette Merger: The auditor change is a direct consequence of the merger between Procter & Gamble and The Gillette Company.
- No Disagreements with Former Auditor: The filing clarifies that there were no accounting, disclosure, or auditing disputes with KPMG LLP concerning the Gillette Plans.
- KPMG Declines Re-election: KPMG LLP chose not to stand for re-election for the audit of the Gillette Plans starting with the fiscal year 2005 audit.
- Limited Scope of Change: This auditor change is solely for the aforementioned Gillette employee plans and does not impact PG's primary independent auditor.
- No Reportable Events Identified: Procter & Gamble is not aware of any reportable events related to the Gillette Plans and KPMG during the relevant periods.
- KPMG Letter Attached: A letter from KPMG confirming agreement with the company's statements regarding the auditor change is included as an exhibit.
03—Questions
Frequently Asked Questions
Does this change of auditor affect Procter & Gamble's main financial statements?
No, this change of auditor is specifically for The Gillette Company Global Employee Stock Ownership Plan and The Gillette Company Employees' Savings Plan. It does not affect the principal independent registered public accounting firm responsible for auditing the consolidated financial statements of The Procter & Gamble Company.
Why did the auditor change for the Gillette plans?
The change in auditor for the Gillette plans occurred as a direct result of the merger between The Procter & Gamble Company and The Gillette Company. Following the merger, the committees responsible for these plans decided to appoint a new auditor.
Were there any issues or disagreements with the previous auditor, KPMG, for the Gillette plans?
No, the filing explicitly states that there were no disagreements with KPMG LLP concerning accounting principles, practices, financial statement disclosures, or auditing scope or procedures for the Gillette Plans. KPMG has also provided a letter confirming their agreement with these statements.
When did this change become effective?
The change in the independent registered public accounting firm was effective as of January 19, 2006.
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