Business Context and Reporting Period
Company: Sierra Bancorp
Filing Type: Form 8-K (Current Report)
Date of Report: July 22, 2019
Reporting Period: Specific event date (July 22, 2019); references fiscal years ended December 31, 2018 and 2017.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is a current report regarding a change in the company's independent registered public accounting firm.
Material Changes
- Accountant Resignation: Vavrinek, Trine, Day & Company ("VTD") resigned as the independent registered public accounting firm on July 22, 2019.
- Reason for Resignation: VTD entered into an agreement with Eide Bailly LLP ("Eide Bailly"), which acquired VTD's operations. Certain staff and partners of VTD joined Eide Bailly.
- New Appointment: Concurrent with the resignation, Sierra Bancorp engaged Eide Bailly as its new independent registered public accounting firm, subject to Audit Committee approval.
- Audit History: VTD's reports for fiscal years 2018 and 2017 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Disagreements: There were no disagreements between the Company and VTD on accounting principles, practices, disclosures, or auditing scope/procedures during the relevant periods.
Guidance, Outlook, and Risks
Consultation: The Company did not consult with Eide Bailly regarding accounting principles or audit opinions prior to engagement, and Eide Bailly provided no advice that was a factor in such decisions.
Risks/Contingencies: No unusual items or specific risks were disclosed in this filing beyond the standard transition of accounting firms. VTD agreed with the statements made in the report regarding the resignation and lack of disagreements.
Investor Verification Checklist
- Verify the transition timeline and effective date of Eide Bailly's engagement.
- Review the letter from Vavrinek, Trine, Day & Company (Exhibit 16.1) to confirm their agreement with the Company's statements.
- Monitor future filings for any changes in audit scope or accounting policies resulting from the firm change.
- Confirm that the Audit Committee has formally approved the engagement of Eide Bailly.