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): October 11, 2002
COMMUNITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Delaware 63-0868361
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
68149 Main Street
Blountsville, Alabama 35031
(Address of principal executive offices)
(205) 429-1000
(Registrant's telephone number)
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ITEM 4: CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
On April 11, 2002, Community Bank, a subsidiary of the Company, requested
approval from the Alabama Banking Department (the "Department") for Dudley,
Hopton-Jones, Sims & Freeman PLLP ("Dudley Hopton") to serve as Community Bank's
independent auditor for the fiscal years ending December 31, 2002 and 2003.
Dudley Hopton had previously been approved to serve, and had served, in that
capacity for fiscal years 2000 and 2001. Dudley Hopton had also served during
that period as the independent auditor for the Company. By letter dated August
1, 2002, the Department declined the request and disapproved Dudley Hopton as
the Banks's independent auditor because of unspecified concerns in connection
with the 2001 audit.
On October 4, 2002, Dudley Hopton tendered its resignation as the Bank's
and the Company's independent auditor. Thereupon, the Bank engaged Carr, Riggs &
Ingram, L.L.P. ("Carr Riggs") to serve in that capacity. The Department has
approved Carr Riggs to serve as the Bank's independent auditor. Carr Riggs will
review the interim financial statements of the Bank for the quarter ended
September 30, 2002. During fiscal years 2000 and 2001 and the first three
quarters of 2002, neither the Bank nor the Company consulted with Carr Riggs for
any purpose.
On October 4, 2002, the Audit Committee of the Board of Directors of the
Company accepted Dudley Hopton's resignation and determined that Carr Riggs
should be engaged to serve as the Company's independent auditor. The Chairman of
the Audit Committee executed an engagement letter with Carr Riggs on October 4,
2002, and the Board of Directors ratified the engagement on the same day. Carr
Riggs will review the Company's interim financial statements for the period
ended September 30, 2002. In the routine course of their engagement, Carr Riggs
will also examine Dudley Hopton's work papers for the 2001 audit. In addition,
Dudley Hopton is re-examining portions of the 2001 audit. The Company expects to
confer with Carr Riggs and Dudley Hopton regarding the results of their
respective examinations when that work is completed.
Neither of Dudley Hopton's reports on the Company's financial statements
for 2000 or 2001 contained an adverse opinion or a disclaimer of opinion or was
qualified or modified as to uncertainty, audit scope, or accounting principles.
During fiscal years 2000 and 2001 and the first three quarters of 2002, there
were no disagreements between the Company and Dudley Hopton on any matter of
accounting principles or practices, financial statement disclosure or auditing
scope or procedure. The Company has provided Dudley Hopton with a copy of this
Report and requested that Dudley Hopton provide it with a letter addressed to
the Securities and Exchange Commission stating whether Dudley Hopton agrees with
the statements made herein. The Company will file Dudley Hopton's response upon
receipt.
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.
COMMUNITY BANCSHARES, INC.
Date: October 11, 2002 By: /s/ Kerri Newton
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Kerri Newton
Chief Financial Officer