Business Context and Reporting Period
This Form 8-K Current Report was filed by Hudson Global, Inc. on April 1, 2019. The filing addresses a change in the company's independent registered public accounting firm. Note: The request metadata references "Star Equity Holdings, Inc.," but the filing text explicitly identifies the registrant as Hudson Global, Inc.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the administrative change of the external auditor.
Material Changes
- Accountant Change: The Audit Committee approved the engagement of BDO USA, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2019, effective immediately.
- Dismissal: KPMG LLP was dismissed as the independent registered public accounting firm.
- Rationale: The change was made primarily to reduce audit fees to an amount more aligned with the size and structure of the company's prospective operations.
Guidance, Outlook, and Risks
Management Commentary: The company stated there were no disagreements with KPMG regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2018 and 2017, or subsequent interim periods through April 1, 2019. Additionally, no "reportable events" occurred during this timeframe.
Consultation with New Auditor: The company confirmed it had not consulted with BDO regarding accounting principles, audit opinions, disagreements, or reportable events prior to the engagement.
Risks and Contingencies: No specific risks or contingencies were disclosed in this filing. KPMG's audit reports for 2017 and 2018 did not contain adverse opinions, disclaimers, or qualifications.
Important Facts for Investors to Verify
- Verify the specific fee reduction achieved by switching from KPMG to BDO USA, LLP.
- Confirm the transition timeline and any potential impact on the audit schedule for the fiscal year ending December 31, 2019.
- Review the attached letter from KPMG (Exhibit 16.1) to ensure their concurrence with the company's statements regarding the lack of disagreements.
- Clarify the discrepancy between the request metadata (Star Equity Holdings, Inc.) and the filing registrant (Hudson Global, Inc.).