Why did Parker-Hannifin change its auditor from PwC to Deloitte & Touche?

The filing states that the Audit Committee of the Board of Directors dismissed PwC effective upon completion of their services for the fiscal year ending June 30, 2007. No specific reason for the change beyond the completion of services was detailed, and importantly, there were no reported disagreements or issues with PwC's past audits.

Are there any concerns about the transition to Deloitte & Touche?

The filing notes that Deloitte & Touche LLP (D&T) is in the process of completing certain non-audit assignments that could affect their independence. Parker-Hannifin expects these assignments to be completed and D&T to formally accept the audit engagement by May 31, 2007. The company will file an updated report once this is finalized.

Were there any accounting or auditing disagreements with the outgoing auditor, PwC?

No, the filing explicitly states that during the fiscal years ended June 30, 2006, and June 30, 2005, and through April 17, 2007, there were no disagreements with PwC on any matter of accounting principles, practices, financial statement disclosure, or auditing scope or procedure.

What is the timeline for the new auditor's official engagement?

The Audit Committee approved the appointment of Deloitte & Touche LLP on April 17, 2007. The company expects D&T to complete their client acceptance procedures and any outstanding non-audit assignments, formally accepting the audit engagement on or prior to May 31, 2007. An additional Form 8-K will be filed to confirm this date and provide any necessary updates.

PH 8-K: Financial Events

Summary

This Form 8-K filing by Parker-Hannifin Corporation (PH) announces a significant change in its independent auditor. Effective upon the completion of services related to the fiscal year 2007 audit, the company has dismissed PricewaterhouseCoopers LLP (PwC). This decision, made by the Audit Committee of the Board of Directors on April 17, 2007, was not preceded by any disagreements or reportable events with PwC regarding accounting principles, financial disclosures, or auditing procedures during the past two fiscal years or through the dismissal date. Concurrently, Parker-Hannifin has appointed Deloitte & Touche LLP (D&T) as its new independent registered public accounting firm for the fiscal year ending June 30, 2008. The company has stated that there have been no consultations with D&T on accounting or auditing matters that would necessitate a disclosure of advice received. The filing also notes that D&T is completing certain non-audit assignments that could affect their independence, with formal engagement expected by May 31, 2007. The company will provide further updates once D&T formally accepts the engagement.

Key Highlights

1Parker-Hannifin Corporation has dismissed PricewaterhouseCoopers LLP (PwC) as its independent auditor, effective after the completion of the fiscal year 2007 audit.
2The dismissal of PwC did not result from any disagreements on accounting principles, financial disclosures, or auditing procedures.
3Deloitte & Touche LLP (D&T) has been appointed as the new independent registered public accounting firm for the fiscal year ending June 30, 2008.
4There have been no prior consultations with D&T regarding specific accounting or auditing matters that would be considered reportable events.
5D&T is currently completing non-audit assignments that may impact their independence, with formal acceptance of the audit engagement anticipated by May 31, 2007.
6A press release dated April 23, 2007, announcing this change was filed with the SEC.
7The company will file an additional Form 8-K to confirm D&T's formal engagement and provide further updates.

Parker-Hannifin Corp 8-K Report, Auditor Change (Apr 23, 2007)

Summary

Key Highlights

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