Business Context and Reporting Period
This Form 8-K Current Report was filed by PRA Group, Inc. on November 15, 2021. The filing addresses a change in the Company's independent registered public accounting firm. The Company is incorporated in Delaware and its common stock trades on the NASDAQ Global Select Market under the symbol PRAA.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document is strictly procedural regarding the appointment of auditors.
Material Changes
- Dismissal of KPMG LLP: The Audit Committee approved the dismissal of KPMG LLP as the independent registered public accounting firm. The dismissal is effective upon the filing of the Annual Report on Form 10-K for the fiscal year ending December 31, 2021.
- Engagement of Ernst & Young LLP: The Audit Committee approved the engagement of Ernst & Young LLP (EY) as the new independent registered public accounting firm for the fiscal year ending December 31, 2022, and related interim periods, effective immediately after KPMG's dismissal.
- Audit History: KPMG's reports for fiscal years 2020 and 2019 did not contain adverse opinions or disclaimers. The reports included separate paragraphs noting the adoption of ASC Topic 326 (Credit Losses) in 2020 and ASC Topic 842 (Leases) in 2019.
- No Disagreements: The Company reported no disagreements with KPMG regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years and the subsequent interim period.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on business operations. It notes that the Company will file an amendment to this 8-K to provide the specific date of KPMG's dismissal and updated disclosures once the 10-K is filed. No unusual items or contingencies were disclosed in this report.
Investor Verification Checklist
- Verify the specific effective date of KPMG's dismissal in the upcoming Form 10-K amendment.
- Review the letter from KPMG LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Monitor future filings for any "reportable events" or disagreements that may arise during the transition period.
- Confirm the scope of EY's engagement for the 2022 fiscal year in subsequent reports.