8-KOther Events

VERIZON COMMUNICATIONS INC 8-K Report (Sep 8, 2000)

Filed September 8, 2000For Securities:VZ

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.

Frequently Asked Questions

Verizon changed its independent accountants as a result of the recently completed merger with GTE Corporation. The combined entity required a consolidated auditing firm, and Ernst & Young LLP (E&Y) was selected.

PricewaterhouseCoopers LLP (PwC) was Verizon's previous auditor, and Arthur Andersen LLP (AA) was GTE's previous auditor. Both PwC and AA have been dismissed as the principal accountants for the combined company but will continue to provide audit and non-audit services to certain subsidiaries and investments of Verizon.

Yes, the report indicates that PwC will continue to report on the consolidated financial statements of Verizon for the fiscal years ended December 31, 1999, and 1998. PwC's report will rely on the reports previously issued by Arthur Andersen for GTE's financial statements.

No, the filing explicitly states that during the fiscal years 1998 and 1999, and through September 6, 2000, there were no disagreements or reportable events with PricewaterhouseCoopers LLP (for Verizon) or Arthur Andersen LLP (for GTE) that would have required them to modify their audit reports.