Business Context and Reporting Period
This Form 8-K Current Report was filed by Cheniere Energy, Inc. on March 2, 2007, covering events occurring on March 1, 2007. The filing addresses a change in the Company's principal independent accountant.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly procedural regarding the appointment of auditors.
Material Changes
- Dismissal of Previous Auditor: UHY LLP, the independent auditor for the fiscal year ending December 31, 2006, was dismissed on March 1, 2007.
- Engagement of New Auditor: Ernst & Young LLP (E&Y) was engaged to serve as the independent auditor for the fiscal year ending December 31, 2007, and all interim periods, effective March 1, 2007.
Management Commentary, Risks, and Contingencies
Management reported the following regarding the auditor transition:
- No Adverse Opinions: UHY LLP's reports for the past two years did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- No Disagreements: There were no disagreements between the Company and UHY LLP on accounting principles, practices, or auditing scope during the two most recent fiscal years or subsequent interim periods.
- No Prior Consultations: The Company did not consult with E&Y regarding accounting principles or audit opinions during the two most recent fiscal years prior to engagement. E&Y did not provide advice that was a significant factor in any accounting or financial reporting decisions.
Investor Verification Checklist
- Verify the content of the letter from UHY LLP to the SEC (Exhibit 16.1) to confirm their agreement with the Company's disclosures regarding the dismissal.
- Review the Company's subsequent 10-K or 10-Q filings to assess the impact of the new auditor on financial reporting practices.
- Confirm that no undisclosed disagreements or reportable events existed between the Company and UHY LLP prior to the dismissal.