8-KOther Events

VALERO ENERGY CORP/TX 8-K Report (Mar 12, 2004)

Filed March 12, 2004For Securities:VLO

Summary

Valero Energy Corporation (VLO) filed an 8-K report on March 11, 2004, primarily announcing a significant change in its independent auditors. The Audit Committee of the Board of Directors, with subsequent approval from the Board, decided to dismiss Ernst & Young LLP (Ernst & Young) and appoint KPMG LLP (KPMG) as the company's independent auditors for the fiscal year ending December 31, 2004. This change follows the completion of the fiscal year 2003 audit by Ernst & Young. Importantly, the filing states that there were no disagreements or reportable events with Ernst & Young concerning accounting principles, financial statement disclosures, or auditing procedures during the relevant periods. This indicates a potentially amicable separation. The appointment of KPMG is subject to ratification by Valero's stockholders at the upcoming 2004 Annual Meeting.

Key Highlights

  • 1Valero Energy Corp. is changing its independent auditor from Ernst & Young LLP to KPMG LLP for the fiscal year ending December 31, 2004.
  • 2The decision to appoint KPMG was made by the Audit Committee on March 10, 2004, and approved by the Board of Directors on March 11, 2004.
  • 3Ernst & Young served as the auditor for the fiscal years ending December 31, 2003, and 2002.
  • 4The filing explicitly states there were no disagreements with Ernst & Young on any accounting principles, disclosures, or auditing procedures.
  • 5There were no reportable events as defined by SEC regulations during the periods of Ernst & Young's engagement that would require disclosure.
  • 6The appointment of KPMG is to be presented to shareholders for ratification at the Annual Meeting on April 29, 2004.

Frequently Asked Questions

Valero Energy's Audit Committee determined to appoint KPMG LLP as the company's independent auditors for the fiscal year ending December 31, 2004, following the completion of the fiscal year 2003 audit by Ernst & Young LLP. This signifies a change in auditing firms.

No, the filing explicitly states that there were no disagreements with Ernst & Young on any matter of accounting principle or practice, financial statement disclosure, or auditing scope or procedure during the years ended December 31, 2003, and 2002, nor were there any reportable events.

The Audit Committee of the Board of Directors appointed KPMG, and this appointment will be presented to Valero's stockholders for ratification at the company's 2004 Annual Meeting of Stockholders, scheduled for April 29, 2004.

The filing indicates that Valero did not consult with KPMG regarding accounting principles for specific transactions or the type of audit opinion that might be rendered on its financial statements during the relevant periods.