CMS DISMISSES E&YCMS Energy Corp., a Jackson, Miss.-based electric and natural gas company, dismissed its auditor, Big Four firm Ernst & Young, and named PricewaterhouseCoopers as its new independent accountant.
In a filing, the company said that the change in auditors was the result of a bidding process. CMS reported no disagreements with its former auditor over the past two fiscal years; however, it did note a material weakness in internal controls related to income tax accounting.
NORTEL ENGAGES KPMG
The board of Nortel Networks, a designer and marketer of networking solutions for local and long-distance service providers, has selected Big Four firm KPMG as its auditor for its fiscal 2007. KPMG replaces Deloitte & Touche as Nortel's independent accountant.
LUBY'S APPOINTS GRANT THORNTON
Luby's Inc., a Houston-based operator of roughly 130 cafeteria-style restaurants, has engaged Grant Thornton as its new independent accountant, replacing Ernst & Young.
In a filing, Luby's said that during its fiscal years ended Aug. 30, 2005 and 2006, there were no disagreements with E&Y on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
However, E&Y reports noted that Luby's did not maintain effective internal control over financial reporting, as of Nov. 17, 2004, and Feb. 9, 2005, due to its determination that its historical methods of accounting for scheduled rent increases, and of determining lives used in the calculation of depreciation of leasehold improvements for certain leased properties, were not in accordance with GAAP.
CHAD THERAPEUTICS DISMISSES KPMG
Chatsworth, Calif.-based Chad Therapeutics dismissed Big Four firm KPMG as its auditor and hired the firm of Rose, Snyder & Jacobs as its successor. In a filing, the company, a manufacturer of oxygen systems for home health care, reported no disagreements with its former independent accountant on any matters of accounting principles or practices.
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