InterDigital Inc (IDCC)

[The Count]

mschere - Re: 04/16/02 8K Filing

The language looks to me to be a disclosure stating that the reason for the change in auditors was not due to the company looking for an auditor was more agreeable. While I've never done an audit under SEC rules, I would guess this is done to prevent companies from threatening to or actually taking their audit business to another firm due to a disagreement on how to report certain transactions. There is a lot of gray areas, were reputable professionals might disagree. Requiring this type of statement when a firm changes auditors would prevent companies from shopping for companies that agree with what they do, as that would erode the accountants' independence and objectivity.

I think the legalese can be boiled down to say
"We are not changing auditors because the new one will let us get away with something the old one wouldn't."

A big thank you to everyone who shared their ideas this weekend - a lot of intelligent and creative thoughts. Monday will be interesting.