Summary
PNC Financial Services Group, Inc. (PNC) filed an 8-K report on December 18, 2001, detailing a significant change in its independent auditor. This change is driven by new Securities and Exchange Commission (SEC) rules designed to enhance auditor independence, which will restrict non-audit services provided by independent auditors to their audit clients starting in August 2002. Consequently, PNC has decided to appoint separate firms for internal audit and independent audit functions, effective fiscal year 2002. This proactive measure ensures compliance with the upcoming regulations and maintains robust auditing practices.
Key Highlights
- 1PNC is changing its independent auditor for the 2002 fiscal year due to new SEC auditor independence rules.
- 2Ernst & Young LLP will continue to audit PNC's 2001 financial statements.
- 3Deloitte & Touche LLP has been engaged to audit PNC's financial statements for fiscal year 2002.
- 4The decision to separate internal and independent audit providers was recommended by the Audit Committee and approved by the Board of Directors.
- 5The change is a proactive step to comply with SEC regulations effective August 5, 2002.
- 6There were no disagreements with Ernst & Young LLP on accounting principles or financial disclosures in the past two fiscal years.
- 7A letter from Ernst & Young LLP, as required by SEC rules, is filed as an exhibit to this report.
Frequently Asked Questions
PNC is changing its independent auditor for the 2002 fiscal year to comply with new Securities and Exchange Commission (SEC) rules aimed at enhancing auditor independence. These rules, effective August 5, 2002, prohibit independent auditors from providing certain non-audit services to their audit clients.
Ernst & Young LLP will continue as PNC's independent auditor for the company's 2001 financial statements. They will also continue to provide certain internal audit services to PNC. However, they will not be auditing the 2002 financial statements due to the new SEC regulations.
PNC has engaged Deloitte & Touche LLP as its principal accountants to audit the company's financial statements for fiscal year 2002.
No, the filing explicitly states that there were no disagreements with Ernst & Young LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure during the past two fiscal years and any subsequent interim period. Ernst & Young's reports on PNC's financial statements for the past two years were unqualified.