Summary
Valero Energy Corporation (VLO), through its role as Administrator for the Valero Energy Corporation Thrift Plan, has formally announced a change in its independent auditors for the Thrift Plan. Effective June 3, 2004, the company dismissed Ernst & Young LLP and appointed KPMG LLP to serve as the Plan's independent auditors for the fiscal year ending December 31, 2003, and subsequent years. This auditor change for the Thrift Plan mirrors a similar transition for the parent company, Valero Energy Corporation, which also appointed KPMG as its independent auditors for the fiscal year ending December 31, 2004, following the dismissal of Ernst & Young.
Key Highlights
- 1Change in independent auditors for the Valero Energy Corporation Thrift Plan.
- 2Ernst & Young LLP was dismissed as the Plan's auditor for the fiscal year ending December 31, 2003.
- 3KPMG LLP has been appointed as the new independent auditor for the Thrift Plan.
- 4The dismissal of Ernst & Young and appointment of KPMG for the Plan aligns with a similar change for the parent corporation, Valero Energy Corporation.
- 5Ernst & Young's reports for the Plan in prior years (2001, 2002) were without adverse or qualified opinions.
- 6There were no reported disagreements with Ernst & Young regarding accounting principles or financial statement disclosures for the Plan during 2002, 2001, or up to the dismissal date.
Frequently Asked Questions
Valero Energy Corporation, acting as the Plan Administrator, dismissed Ernst & Young LLP and appointed KPMG LLP as the independent auditors for the Valero Energy Corporation Thrift Plan. This change was made effective June 3, 2004. This auditor rotation for the Thrift Plan appears to be in conjunction with a similar change made for the parent corporation.
For investors in Valero Energy Corporation, this change in auditors for the Thrift Plan itself may not have a direct material impact unless it signals broader internal control or financial reporting review changes. The key takeaway is the consistent auditor appointment across the corporation and its employee benefit plan, suggesting a unified approach to external audit oversight. Investors should note that Ernst & Young's previous reports on the plan were clean.
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, 2002 and 2001, and through the date of dismissal. Furthermore, there were no reportable events defined in Regulation S-K.
The filing indicates that Valero Energy Corporation had not consulted with KPMG regarding accounting principles or audit opinions for the Thrift Plan prior to the appointment. However, KPMG was appointed as the independent auditors for the parent corporation, Valero Energy Corporation, for the fiscal year ending December 31, 2004. This suggests KPMG has been engaged by the parent company, but not specifically for the Thrift Plan prior to this announcement.