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Biotech / Medical : Covalent Group Inc (CVGR) an undiscovered CRO

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To: Clayleas who wrote (40)1/9/1998 3:11:00 PM
From: JanyBlueEyes  Read Replies (1) of 107
 
New Accountants

S-8 Filed With Sec:

On December 31, 1997, Covalent Group, Inc. (the "Company") replaced Baratz & Associates, P.A. ("Baratz"), its independent public accountants, with Arthur Andersen LLP ("Andersen"). Baratz previously audited the Company's financial statements for the years ended December 31, 1996 and 1995.

The report of Baratz on the Company's consolidated financial statements for the years ended December 31, 1996 and 1995 did not contain an adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the last two years there were no disagreements with Baratz on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

The decision of the Company to replace Baratz with Andersen as the Company's independent public accountants was unanimously approved by the Board of Directors and approved by the Company's stockholders at its annual meeting on September 16, 1997.

Pursuant to Item 304(a)(3) of Regulation S-B, the Company has requested Baratz to furnish it a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above
statements. A copy of that letter is filed as an Exhibit to this Form 8-K.
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