Business Context and Reporting Period
Company: Mueller Water Products, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 20, 2007
Reporting Period: The filing addresses events occurring on December 20, 2007, regarding the change of the Company's independent registered public accounting firm.
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 and dismissal of auditors.
Material Changes
- Dismissal of Auditor: On December 20, 2007, the Audit Committee dismissed PricewaterhouseCoopers LLP (PwC) as the independent registered public accounting firm.
- Appointment of New Auditor: On December 20, 2007, the Audit Committee appointed Ernst & Young LLP (E&Y) as the independent registered public accounting firm for the fiscal year ending September 30, 2008.
- Audit History: PwC's reports for the fiscal years ended September 30, 2006, and 2007 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: There were no disagreements with PwC on accounting principles, practices, financial statement disclosure, or auditing scope/procedures during the relevant periods.
Management Commentary, Risks, and Contingencies
- Internal Control Weakness: Management previously disclosed a material weakness in internal control over financial reporting due to a lack of personnel with expertise in financial reporting and control procedures. This weakness existed during the quarters ended December 31, 2005, March 31, 2006, and June 30, 2006.
- Remediation: Management remediated this material weakness during the fourth quarter of the fiscal year ended September 30, 2006.
- Consultations with New Auditor: Neither the Company nor anyone on its behalf consulted E&Y regarding accounting principles or audit opinions during the two most recent fiscal years or the interim period preceding their appointment.
Investor Verification Checklist
- Verify the reasons for dismissing PwC, as the filing states no disagreements or reportable events occurred other than the previously disclosed and remediated internal control weakness.
- Confirm the effective date of E&Y's engagement for the fiscal year ending September 30, 2008.
- Review the attached letter from PwC (Exhibit 16.1) to ensure the auditor agrees with the Company's statements regarding the dismissal and lack of disagreements.
- Assess the current status of internal controls to ensure the remediation of the 2006 material weakness remains effective.