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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 29549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 19, 2000
GIANT GROUP, LTD.
9440 Santa Monica Blvd., Suite 407
Beverly Hills, CA 90210
(310) 273 5678
State of Incorporation: Delaware
Commission File Number: 1-4323
IRS Employer Identification: 23-0622690
Former address since last Form 8-K: 9000 Sunset Blvd., 16/th/ Floor
Los Angeles, California 90069
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Item 4. Changes in Registrant's Certifying Accountant.
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1. On July 19, 2000, Registrant dismissed Arthur Andersen LLP ("Arthur
Andersen") as its auditors.
2. Arthur Andersen's Report dated April 12, 2000 on Registrant's financial
statements for the year ended December 31, 1999 and its Dual dated Report
of March 12 and 25, 1999 for the year ended December 31, 1998 did not
contain an adverse opinion or a disclaimer of opinion, and both Reports
were not qualified or modified as to audit scope or accounting principles.
However, Arthur Andersen's Report dated April 12, 2000 on Registrant's
financial statements for the year ended December 31, 1999 was modified to
include a paragraph on the Registrant's ability to continue as a going
concern.
3. The decision to dismiss Arthur Andersen and engage new auditors was
approved by the Registrant's Audit Committee of the Board of Directors.
4. During the Registrant's fiscal years ended December 31, 1999 and 1998,
and the subsequent interim period, there were no disagreements with 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 it to make reference to
the subject matter of the disagreement in connection with its Report.
5. During Registrant's fiscal years ended December 31, 1999 and 1998 and
the subsequent interim period:
(a) Arthur Andersen has advised the Registrant by a Material Weakness
Letter dated May 19, 2000 that during the course of their audit work
in connection with the sales cutoff at December 31, 1999 , certain
documents may have been altered and that controls surrounding the
sales cutoff were not operating effectively. Adjustments related to
sales that were not recorded in the proper periods were made but no
modification to Arthur Andersen's Report was made.
(b) Arthur Andersen has not advised Registrant that information has
come to Arthur Andersen's attention that has led Arthur Andersen to
no longer be able to rely on Management's representations, or that has
made Arthur Andersen unwilling to be associated with the financial
statements prepared by Management.
(c) Arthur Andersen has not advised Registrant that Arthur Andersen
has needed to expand significantly the scope of its audit [other than
the sales cutoff matter stated in paragraph (a) above], or that
information has come to Arthur Andersen's attention during such time
period that if further investigated may (i) materially impact the
fairness or reliability of either a previously-issued audit report or
the underlying financial statements or the financial statements issued
or to be issued covering the fiscal periods subsequent to the date of
the most-recent financial statements covered by an audit report or
(ii) cause Arthur Andersen to be unwilling to rely on Management's
representations or be associated with the Registrant's financial
statements.
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6. Management of the Registrant has not yet engaged any accounting
firm to examine the books and accounts of the Registrant for the
fiscal year ending December 31, 2000.
7. Registrant has not, during its fiscal years ended December 31,
1999 and 1998, and the subsequent interim period, consulted with any
accounting firm regarding the application of accounting principles to
a specified transaction or the type of audit opinion that might be
rendered on Registrant's financial statements
Item 7. Financial Statements and Exhibits.
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Exhibit 16. Letter of Arthur Andersen LLP regarding change in
certifying Accountant.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 26, 2000 By: /s/ Pasquale A. Ambrogio
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Controller and Chief Accountant
