SEC Filing Summary: Square, Inc. (Block, Inc.)
Business Context and Reporting Period
This Form 8-K was filed by Square, Inc. (now Block, Inc.) on June 13, 2019. The report discloses a material change in the company's independent registered public accounting firm. The filing covers events occurring on June 13, 2019, and references the fiscal years ended December 31, 2018, and December 31, 2017.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly procedural regarding the change of auditors.
Material Changes
- Dismissal of Previous Auditor: On June 13, 2019, the Audit and Risk Committee dismissed KPMG LLP as the independent registered public accounting firm, effective immediately.
- Appointment of New Auditor: On June 13, 2019, the Committee engaged Ernst & Young LLP (EY) as the new independent registered public accounting firm for the fiscal years ending December 31, 2019, and December 31, 2020.
- Audit History: KPMG's audit reports for 2017 and 2018 did not contain adverse opinions, disclaimers, or qualifications, except for a standard paragraph noting the adoption of ASC Topic 606 (Revenue from Contracts with Customers) effective January 1, 2018.
- Disagreements: The company reported no disagreements with KPMG regarding accounting principles, practices, or auditing scope during the relevant periods. No "reportable events" occurred.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary on business performance. The primary risk disclosed is the transition of audit responsibilities. Representatives from both KPMG and EY were scheduled to attend the 2019 annual meeting of stockholders on June 18, 2019, to address shareholder questions.
Investor Verification Checklist
- Verify the reasons for the auditor change by reviewing the letter from KPMG LLP filed as Exhibit 16.1.
- Confirm the effective date of EY's engagement for the 2019 and 2020 fiscal years.
- Review the upcoming 2019 annual meeting minutes or transcripts for statements made by representatives of KPMG and EY.
- Check subsequent filings (e.g., 10-K or 10-Q) to ensure the new auditor's initial reports align with the company's financial disclosures.