Business Context and Reporting Period
This Form 8-K Current Report was filed by AMERCO and U-Haul International, Inc. (collectively, the "Company") on July 17, 2002. The filing discloses a change in the Company's independent public accountants.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in auditing firm and related internal control matters.
Material Changes
On July 17, 2002, the Company dismissed PricewaterhouseCoopers LLP ("PwC") as its principal accountant. The decision was recommended by AMERCO's audit committee and authorized by the Board of Directors. There were no disagreements with PwC regarding accounting principles, financial statement disclosure, or auditing scope. PwC's reports for the past two fiscal years did not contain adverse opinions, disclaimers, or qualifications.
Outlook, Risks, and Contingencies
While no "reportable events" under Regulation S-K occurred, PwC identified material weaknesses in the Company's internal controls during audits for the fiscal years ended March 31, 2001 and 2002. Specific areas requiring improvement include:
- Assignment of responsibility for general ledger accounts and monthly reconciliations (particularly intercompany accounts, inventory, and fixed assets).
- Strengthening management's internal control structure to detect misstated account balances timely.
- Limiting access to the general ledger and ensuring proper review and approval of journal entries.
- Improving controls related to inventory costing, LIFO reserve calculations, and record retention.
- Filling position vacancies with competent personnel and improving documentation and cross-training.
The Audit Committee has discussed these matters with PwC, and the Company has begun addressing them. The Company is currently considering other independent accountants to replace PwC.
Key Facts for Investor Verification
- Confirmation of the appointment of a new independent public accountant to replace PwC.
- Progress reports on the remediation of the five specific internal control weaknesses identified by PwC.
- Verification that no undisclosed disagreements existed between management and PwC regarding accounting practices.
- Assessment of whether the identified control weaknesses impacted the accuracy of previously issued financial statements.