8-KOther Events

VALERO ENERGY CORP/TX 8-K Report (Jun 18, 2002)

Filed June 18, 2002For Securities:VLO

Summary

This Form 8-K filing by Valero Energy Corporation (VLO), specifically concerning the Valero Savings Plan, primarily reports a change in the Plan's independent auditors. Effective June 12, 2002, the Plan Administrator dismissed Arthur Andersen LLP as the independent auditors for the Valero Savings Plan and appointed Ernst & Young LLP to serve in that capacity for the year ending December 31, 2001, and subsequent periods. Notably, the filing explicitly states that there were no disagreements with Arthur Andersen on any accounting principles, financial statement disclosures, or auditing procedures during the relevant periods. This indicates a smooth transition and absence of any contentious issues with the outgoing auditor. The Plan Administrator also confirmed no prior consultations with Ernst & Young regarding specific accounting applications or audit opinions prior to their appointment.

Key Highlights

  • 1Valero Savings Plan (formerly UDS 401(k) Retirement Savings Plan) has changed its independent auditors.
  • 2Arthur Andersen LLP has been dismissed as the Plan's independent auditors for the year ending December 31, 2001.
  • 3Ernst & Young LLP has been appointed as the new independent auditors for the Plan.
  • 4The dismissal of Arthur Andersen was approved by the Plan Administrator on June 12, 2002.
  • 5There were no disagreements between Valero Savings Plan and Arthur Andersen on any accounting principles, disclosures, or auditing procedures.
  • 6Arthur Andersen has provided a letter agreeing with the statements made in the Form 8-K filing.
  • 7The Plan Administrator did not consult with Ernst & Young on any accounting matters prior to their appointment.

Frequently Asked Questions

The filing indicates a change in auditors for the Valero Savings Plan, with Arthur Andersen LLP being dismissed and Ernst & Young LLP appointed. While the exact reasons for the change are not detailed beyond the recommendation of the audit committee for the corporation, the filing emphasizes that there were no disagreements with Arthur Andersen on accounting or auditing matters.

No, the filing explicitly states that Arthur Andersen's reports for the prior years did not contain adverse opinions or qualifications, and importantly, there were no disagreements with Arthur Andersen on any accounting principles, financial statement disclosures, or auditing procedures. This suggests the change is not due to any financial reporting issues.

The Plan Administrator dismissed Arthur Andersen and selected Ernst & Young on June 12, 2002, for the audit of the Plan's financial statements for the year ending December 31, 2001.

Yes, the filing notes that the board of directors of Valero Energy Corporation also approved the dismissal of Arthur Andersen as the Company's independent auditors following the 2001 audit and selected Ernst & Young LLP to serve as the Company's independent auditors for the year ending December 31, 2002. This change was subsequently ratified by stockholders.