8-KOther Events

VALERO ENERGY CORP/TX 8-K Report (Jun 13, 2002)

Filed June 13, 2002For Securities:VLO

Summary

This Form 8-K filing by Valero Energy Corporation, acting as the Plan Administrator for the Valero Energy Corporation Thrift Plan, details a significant change in the plan's independent auditors. Effective June 12, 2002, the plan has dismissed Arthur Andersen LLP and appointed Ernst & Young LLP as the new independent auditors for the year ending December 31, 2002. This change follows a similar decision made by the corporation itself regarding its own independent auditors, which was approved by the board of directors and ratified by stockholders. The filing explicitly states that the dismissal of Arthur Andersen was based on the recommendation of the audit committee, and there were no disagreements regarding accounting principles, financial statement disclosures, or auditing procedures during the periods audited by Arthur Andersen. This aims to provide assurance to investors that the auditor change is not due to unresolved issues or disputes with the previous auditor.

Key Highlights

  • 1Valero Energy Corporation Thrift Plan has appointed Ernst & Young LLP as its new independent auditor for the fiscal year ending December 31, 2002.
  • 2Arthur Andersen LLP has been dismissed as the independent auditor for the Thrift Plan.
  • 3The auditor change for the Thrift Plan aligns with a similar change in the corporation's independent auditors, indicating a company-wide shift.
  • 4The company affirms that there were no disagreements with Arthur Andersen on any accounting principles, financial statement disclosures, or auditing procedures during their tenure.
  • 5The dismissal and appointment were recommended by the audit committee and approved by the Plan Administrator.
  • 6Arthur Andersen LLP has provided a letter agreeing with the statements made in the filing regarding the auditor change.

Frequently Asked Questions

Valero Energy, acting as the Plan Administrator, changed the independent auditor for the Thrift Plan to Ernst & Young LLP from Arthur Andersen LLP effective June 12, 2002. This decision was made upon the recommendation of the audit committee, and it mirrors a similar change for the corporation's own auditors, suggesting a strategic or policy-driven decision rather than an issue with the previous auditor.

No, the filing explicitly states that there were no disagreements with Arthur Andersen on any matter of accounting principle or practice, financial statement disclosure, or auditing scope or procedure during the years ended December 31, 2000 and 1999, and up to the date of the filing. Arthur Andersen also confirmed their agreement with these statements.

The filing indicates no adverse opinions or qualifications from Arthur Andersen's past reports on the Plan's financial statements for 2000 and 1999. The transition to a new auditor, coupled with the confirmation of no disagreements, suggests that this is a procedural change and not a reflection of underlying issues with the Plan's financial health or prior reporting.

According to the filing, the Plan Administrator did not consult Ernst & Young LLP with respect to the application of accounting principles to a specified transaction, the type of audit opinion that might be rendered, or any other matters prior to their selection as the new independent auditors.