Summary
Verizon Communications Inc. (VZ) has filed an 8-K report on September 7, 2000, detailing a significant change in its independent auditors following the recently completed merger with GTE Corporation. The company has appointed Ernst & Young LLP (E&Y) as its new independent accountant, a decision recommended by the Audit Committee and approved by the Board of Directors. This change affects the audit engagements previously held by PricewaterhouseCoopers LLP (PwC) for Verizon and Arthur Andersen LLP (AA) for GTE. While E&Y is now the primary auditor for the combined entity, PwC and AA will continue to provide audit and non-audit services to certain subsidiaries and investments. Importantly, the report states there were no disagreements or reportable events with the former auditors (PwC and AA) during the relevant periods that would have impacted their audit reports for fiscal years 1998 and 1999. PwC will continue to issue reports on the consolidated financial statements for fiscal years 1998 and 1999, relying on AA's reports.
Key Highlights
- 1Verizon Communications Inc. (VZ) has appointed Ernst & Young LLP (E&Y) as its new independent auditor.
- 2This auditor change is a direct result of the recently completed merger between Verizon and GTE Corporation.
- 3PricewaterhouseCoopers LLP (PwC) was the previous auditor for Verizon, and Arthur Andersen LLP (AA) was the previous auditor for GTE.
- 4PwC and AA have been dismissed as principal accountants for the combined entity but will continue to serve certain subsidiaries and investments.
- 5PwC will continue to report on VZ's consolidated financial statements for fiscal years 1998 and 1999.
- 6The filing confirms no disagreements or reportable events occurred with the former auditors during the 1998-1999 fiscal years and up to September 6, 2000.