Both companies cited recent events involving Arthur Andersen, most visibly its role in shredding documents related to the bankruptcy of energy giant Enron Corp., as the reason for switching accounting firms, not on matters of accounting principles or practices or financial statement disclosures.
Cummins chairman & CEO Tim Solso said the board has chosen PricewaterhouseCoopers LLP to handle its external auditing responsibilities effective immediately.
Allied has chosen KPMG LLP as its independent public accountant.
“We are impressed with the experience of the KPMG team and look forward to working with them,” Allied president & CEO Hugh E. Sawyer said; “Arthur Andersen has provided many years of quality service to Allied and we have a high regard for the individuals that have served our company.”
The move comes at a time of financial crisis for Allied, however. In the first six months of 2001 alone, Allied posted losses of $24.6 million and narrowly avoided being de-listed from the New York Stock Exchange, despite falling below the exchange's listing standards of $50 million in total market capitalization. Allied can remain listed, subject to quarterly monitoring, as long as it gets over the $50-million mark by November 29.
