American Home Shield 2002 Annual Report Download - page 62

On May 20, 2002, ServiceMaster, with the approval of
the Board of Directors and its Audit and Finance
Committee, dismissed Arthur Andersen LLP as its
independent auditors and engaged Deloitte & Touche
LLP as its new independent auditors. The appointment
of Deloitte & Touche became effective on May 22, 2002.
During the two fiscal years ended December 31, 2001
and 2000, and the interim period subsequent to December
31, 2001, and through May 20, 2002, there were no
disagreements between ServiceMaster and Arthur
Andersen on any matter of accounting principles or
practices, financial statement disclosure or auditing
scope or procedure, which, if not resolved to Arthur
Andersen’s satisfaction, would have caused Arthur
Andersen to make reference to the subject matter in
connection with its reports on ServiceMaster’s consolidated
financial statements for such periods. Arthur Andersen’s
report on ServiceMaster’s consolidated financial
statements for the years ended December 31, 2001 and
2000 did not contain an adverse opinion or a disclaimer
of opinion, nor was it qualified or modified as to uncer-
tainty, audit scope or accounting principles. During the
years ended December 31, 2001 and 2000, and the interim
period from January 1, 2002 through May 20, 2002,
there were no reportable events as described under Item
304(a)(1)(v) of Regulation S-K. During the years ended
December 31, 2001 and 2000, and through May 20,
2002, ServiceMaster did not consult with Deloitte &
Touche with respect to the application of accounting
principles to a specified transaction, either completed or
proposed, the type of audit opinion that might be rendered
on ServiceMaster’s consolidated financial statements,
or any matter that was the subject of a disagreement or
a reportable event, as described in Items 304(a)(2)(i) and
(ii) of Regulation S-K.
To the Shareholders of The ServiceMaster Company
We have audited the accompanying consolidated
statements of financial position of The ServiceMaster
Company and subsidiaries (the “Company”) as of
December 31, 2002 and 2001, and the related consolidated
statements of income, shareholders’ equity, and cash
flows for each of the three years in the period ended
December 31, 2002. These financial statements are the
responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of
America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements
present fairly, in all material respects, the financial
position of The ServiceMaster Company and sub-
sidiaries as of December 31, 2002 and 2001, and the
results of their operations and their cash flows for each
of the three years in the period ended December 31,
2002, in conformity with accounting principles generally
accepted in the United States of America.
As discussed in the Restatement note to the consolidated
financial statements, the accompanying 2001 and 2000
consolidated financial statements have been restated.
As discussed in the Newly Adopted Accounting Principles
note to the consolidated financial statements, effective
January 1, 2002, the Company adopted SFAS 142,
Goodwill
and Other Intangible Assets.
Chicago, Illinois
March 26, 2003
58 ServiceMaster
Independent Auditors
Report of Independent Auditors