NEW YORK — Replacement parts manufacturer Standard Motor Products issued a statement today that its independent accountants KPMG LLP resigned as of August 19.
The company stated that there were no disagreements with KPMG as to accounting principles or practices, financial statement disclosure or auditing scope or procedure and that the accounting firm had not previously mentioned to the company’s Audit Committee its intention to resign.
According to James Burke, Standard Motor Products’ CFO, KPMG resigned because it was not satisfied with the company’s progress with regard to documentation under Section 404 of the Sarbanes-Oxley Act of 2002, as well as due to a disagreement regarding its 2004 audit fee.
“Our Section 404 project encompasses the assignment of internal resources as well as the previous engagement of another ‘Big Four’ accounting firm as an independent consultant to assist us,” said Burke. “Due to our simultaneous integration of the acquired Engine Management Division of Dana and our Sarbanes-Oxley Act compliance activities, we expect some increased administrative costs in the third and fourth fiscal quarters of 2004.”
“Although we regret KPMG’s decision to resign as our independent accountants, KPMG’s resignation does not in any way affect the reliability of our audited financial statements,” Burke said.
Standard’s Audit Committee has started its search for a new independent accountant and is currently requesting proposals from other accounting firms.
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