Business Context and Reporting Period
This Form 6-K filing by Mereo Biopharma Group Plc, dated July 20, 2021, reports a change in the registrant's certifying accountant. The Company is a foreign private issuer based in London, United Kingdom.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Accountant Change: The Board of Directors appointed BDO LLP as the independent registered public accounting firm for the year ending December 31, 2021, effective immediately.
- Outgoing Firm: BDO LLP replaces Ernst & Young LLP.
- Audit History: Reports by Ernst & Young LLP for the years ended December 31, 2020, 2019, and 2018 did not contain adverse opinions, disclaimers, or qualifications, except for a note regarding the adoption of IFRS 16 (Leases) in 2019.
- Disagreements: There were no disagreements with Ernst & Young LLP on accounting principles, practices, or auditing scope during the relevant periods.
- Internal Controls: A material weakness in internal controls identified in the interim period ended June 30, 2020, was remediated as of December 31, 2020.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding business operations. It confirms that no consultations were held with BDO LLP regarding accounting principles or audit opinions prior to their appointment.
Investor Verification Checklist
- Verify the effective date of the transition from Ernst & Young LLP to BDO LLP.
- Confirm the status of the previously disclosed material weakness in internal controls (remediated as of Dec 31, 2020).
- Review the attached letter from Ernst & Young LLP (Exhibit 16.1) for any additional disclosures.
- Check subsequent filings for the first financial statements audited by BDO LLP.