Business Context and Reporting Period
This Form 8-K is a current report filed by Rent-A-Center, Inc. (not Upbound Group, Inc., as indicated in the metadata) on June 4, 2019. The report discloses a material change in the company's independent registered public accounting firm.
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 corporate governance regarding the external auditor.
Material Changes
- Dismissal of Auditor: The Audit Committee dismissed KPMG LLP as the independent registered public accounting firm effective June 4, 2019.
- Appointment of New Auditor: The Committee appointed Ernst & Young (E&Y) to serve as the new independent auditor, effective immediately upon completion of client acceptance procedures on June 8, 2019.
- Scope of New Audit: E&Y is engaged to audit the financial statements for the fiscal year ending December 31, 2019.
Management Commentary and Risks
- Reason for Change: The decision followed a thorough formal review and solicitation of proposals from several accounting firms.
- Disagreements: The company reported no disagreements with KPMG regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the fiscal years ended December 31, 2017 and 2018, or the interim period through June 5, 2019.
- Reportable Events: No reportable events occurred during the same periods.
- Previous Audit Opinions: KPMG's reports for 2017 and 2018 were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty or scope.
- Consultation with New Auditor: The company confirmed no consultations with E&Y regarding accounting principles or audit opinions prior to the appointment.
Investor Verification Checklist
- Verify the effective date of E&Y's engagement (June 8, 2019) versus the dismissal date of KPMG (June 4, 2019).
- Review the attached letter from KPMG (Exhibit 16.1) to confirm their agreement with the company's statements regarding the lack of disagreements.
- Monitor future filings for the first audit report issued by E&Y for the fiscal year ending December 31, 2019.
- Confirm that the metadata reference to "Upbound Group, Inc." is incorrect, as the registrant is clearly identified as Rent-A-Center, Inc.