SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2000
EMPLOYEE SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
Arizona 000-22600 86-0676898
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6225 N. 24th Street, Phoenix, Arizona 85016
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (602) 955-5556
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(Former name or former address, if changed since last report.)
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ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS
On May 3, 2000, Employee Solutions, Inc. (the "Company"), with the approval
of the Company's board of directors, dismissed Arthur Andersen LLP ("Arthur
Andersen") and engaged Ernst & Young LLP ("Ernst & Young") as its independent
public accountants for the year ending December 31, 2000. The dismissal of
Arthur Andersen and the retention of Ernst & Young resulted from the submission
by Ernst & Young of a proposal deemed most desirable by the Company in response
to a request for proposals issued by the Company in connection with the audit
for the year ending December 31, 2000.
Arthur Andersen's reports on the Company's financial statements for the
past two years contained no adverse opinion and no disclaimer of opinion, nor
were such reports qualified or modified as to uncertainty, audit scope or
accounting principles, except that Arthur Andersen's report on the Company's
1999 financial statements included a report modification in the form of an
explanatory paragraph which expressed substantial doubt about the ability of the
Company to continue as a going concern. In the Company's two most recent fiscal
years and the subsequent interim periods preceding the dismissal of Arthur
Andersen, there were no disagreements with Arthur Andersen on any matter of
accounting principles or practices, financial statement disclosure or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
Arthur Andersen, would have caused it to make a reference to the subject matter
of the disagreements in connection with its reports.
The Company has provided Arthur Andersen with a copy of the foregoing
disclosure, and has requested that Arthur Andersen furnish it with a letter
addressed to the Securities and Exchange Commission stating whether or not it
agrees with such disclosure. The Company has filed as an Exhibit to this Form
8-K a copy of the letter from Arthur Andersen required by Item 304 of Regulation
S-K.
During the Company's two most recent fiscal years and the subsequent
interim periods preceding the engagement of Ernst & Young, neither the Company
nor any party acting on its behalf has consulted with Ernst & Young regarding
(i) either the application of accounting principles to a specified transaction,
either completed or proposed, or the type of audit opinion that might be
rendered on the Company's financial statements, or (ii) any matter that was
either the subject of a "disagreement" (as defined in Item 304(a)(1)(iv) of
Regulation S-K and related instructions) or a "reportable event" (as defined in
Item 304(a)(i)(v) of Regulation S-K).
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibit 1 - Letter from Arthur Andersen LLP, dated May 9, 2000, addressed
to the Securities and Exchange Commission pursuant to Item 304(a)(3) of
Regulation S-K.
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SIGNATURES
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.
EMPLOYEE SOLUTIONS, INC.
Date: May 9, 2000 By /s/ Quentin P. Smith, Jr.
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Quentin P. Smith, Jr.
President and Chief Executive Officer
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
May 9, 2000
Dear Sir/Madam,
We have read the first two (2) paragraphs of Item 4 included in the Form
8-K dated May 3, 2000 of Employee Solutions, Inc. to be filed with the
Securities and Exchange Commission and are in agreement with the statements
contained therein.
Very truly yours,
/s/ ARTHUR ANDERSEN
Copy to: Mr. John V. Prince, CFO, Employee Solutions, Inc.
