Business Context and Reporting Period
This Form 8-K is a current report filed by The Simply Good Foods Company on February 25, 2019. The filing addresses a significant 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 and audit firm transitions.
Material Changes
- Dismissal of Auditor: The Audit Committee dismissed Ernst & Young LLP as the independent registered public accounting firm, effective immediately on February 25, 2019.
- Engagement of New Auditor: The Audit Committee approved the engagement of Deloitte & Touche LLP to audit the consolidated financial statements for the fiscal year ending August 31, 2019.
- Audit History: The audit reports issued by Ernst & Young for the fiscal years ended August 26, 2017, and August 25, 2018, were unqualified and contained no adverse opinions or disclaimers.
- Disagreements: There were no disagreements with Ernst & Young regarding accounting principles, practices, or auditing scope.
- Reportable Events: The only reportable event noted was a material weakness in internal control over financial reporting related to the revenue recognition process as of May 26, 2018. The company states this was remediated as described in its 2018 Form 10-K.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on future business performance. The primary risk disclosed relates to the transition of the audit firm and the historical material weakness in revenue recognition controls, which the company asserts has been remediated.
Investor Verification Checklist
- Verify the reasons for the dismissal of Ernst & Young LLP beyond the standard disclosure.
- Review the company's 2018 Form 10-K (Item 9A) to confirm the details and status of the remediation of the revenue recognition material weakness.
- Confirm that Deloitte & Touche LLP has no prior undisclosed consultations with the company regarding accounting or auditing matters.
- Examine the letter from Ernst & Young LLP (Exhibit 16.1) to ensure they agree with the statements made in this filing.