Business Context and Reporting Period
This Form 8-K is a current report filed by TILLY's, INC. on March 31, 2015 (filed April 2, 2015). The report addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This document focuses exclusively on corporate governance regarding audit services.
Material Changes
- Accountant Change: The Audit Committee dismissed Deloitte & Touche LLP, which had served as the independent auditor since fiscal year 2006.
- New Appointment: BDO USA, LLP was engaged as the independent registered public accounting firm for fiscal year 2015, effective immediately upon the filing of the 2014 Annual Report on Form 10-K.
- Process: The change resulted from a competitive bid process initiated in the second half of fiscal year 2014.
Outlook, Risks, and Management Commentary
- No Disagreements: The Company reported no disagreements with Deloitte regarding accounting principles, financial statement disclosure, or auditing scope during fiscal years 2013 and 2014, or through March 31, 2015.
- No Reportable Events: There were no "reportable events" as defined by Regulation S-K during the relevant periods.
- Audit Opinions: Deloitte's reports for fiscal years 2013 and 2014 did not contain adverse opinions, disclaimers, or qualifications.
- Stockholder Ratification: The appointment of BDO will be submitted for stockholder ratification at the 2015 annual meeting on June 10, 2015.
- Consultation with New Auditor: The Company had not consulted BDO on accounting principles or reportable events prior to their engagement.
Investor Verification Checklist
- Verify the letter from Deloitte & Touche LLP (Exhibit 16.1) confirming their agreement with the Company's statements regarding the dismissal.
- Confirm the outcome of the stockholder ratification vote at the June 10, 2015 annual meeting.
- Review the upcoming Form 10-K for fiscal year 2014 to ensure the transition to BDO is reflected in the audit report.