Were there any disputes or disagreements with PricewaterhouseCoopers that led to their dismissal?

According to the filing, there were no disagreements with PricewaterhouseCoopers on any matter of accounting principles, practices, financial statement disclosure, or auditing scope or procedure. PWC's reports for the fiscal years ended October 31, 2005, and 2004, did not contain adverse opinions, disclaimers of opinion, or qualifications.

What does the mention of 'material weaknesses' in internal controls mean for investors?

The identification of material weaknesses, specifically concerning accounts payable for inventory purchases and the amortization of capitalized software development costs, indicates significant deficiencies in the company's financial reporting processes. This suggests a higher risk of errors in financial statements and may require careful scrutiny of the company's remediation efforts and future financial reporting by investors.

Did Take-Two consult with Ernst & Young before appointing them as their new auditor?

The filing explicitly states that Take-Two did not consult with Ernst & Young regarding any specific accounting transactions, proposed transactions, audit opinions, or any matters that constituted a disagreement or reportable event prior to their appointment as the new independent registered public accounting firm.

TTWO 8-K: Financial Events

Q: Why did Take-Two Interactive change its auditors from PricewaterhouseCoopers (PWC) to Ernst & Young (E&Y)?

The 8-K filing states that the dismissal of PWC was approved by the Audit Committee of the Board of Directors. While the company indicates there were no disagreements with PWC that would have led to a modified audit opinion, the change comes amidst the acknowledgement of material weaknesses in internal controls over financial reporting identified in the previous fiscal year.

Summary

Take-Two Interactive Software, Inc. filed an 8-K report on April 6, 2006, to announce a significant change in its independent registered public accounting firm. Effective April 4, 2006, the company's Audit Committee dismissed PricewaterhouseCoopers LLP (PWC) and appointed Ernst & Young LLP (E&Y) as its new auditor. This change is a key development for investors as it often signals a new phase in financial oversight or a response to prior audit findings. The filing states there were no disagreements with PWC that would have led to a modified audit opinion, but it does reference material weaknesses in internal controls over financial reporting identified as of October 31, 2005, concerning accounts payable and amortization of capitalized software development costs.

Key Highlights

1Take-Two Interactive Software, Inc. has changed its independent auditor, dismissing PricewaterhouseCoopers LLP (PWC) and appointing Ernst & Young LLP (E&Y) as of April 4, 2006.
2The dismissal of PWC was approved by the Audit Committee of the Board of Directors.
3There were no disagreements with PWC on accounting principles, financial statement disclosure, or auditing procedures during the specified periods that would have resulted in a modified audit opinion.
4PWC's audit reports for the fiscal years ended October 31, 2005, and 2004, were not adverse, disclaimed, qualified, or modified.
5The company acknowledges material weaknesses in internal control over financial reporting as of October 31, 2005, related to accounts payable existence/valuation and accuracy of capitalized software development cost amortization.
6The filing includes a letter from PWC to the SEC (Exhibit 16.1) confirming their agreement with the statements made by the company regarding the auditor change.
7There were no prior consultations with E&Y regarding accounting principles, audit opinions, or reportable events prior to their appointment.

TAKE TWO INTERACTIVE SOFTWARE INC 8-K Report, Auditor Change (Apr 6, 2006)

Summary

Key Highlights

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