Business Context and Reporting Period
Company: Plumas Bancorp
Filing Type: Form 8-K (Current Report)
Date of Report: November 1, 2011
Reporting Period: Event date November 1, 2011; Fiscal years referenced include those ended December 31, 2010 and 2009.
Key Financial Metrics
This filing does not contain financial performance data. The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The primary material change reported is the replacement of the independent registered public accounting firm:
- Former Auditor: Perry-Smith LLP (resigned).
- New Auditor: Crowe Horwath LLP (engaged).
- Reason for Change: The change resulted from a transaction closed on November 1, 2011, whereby Crowe acquired certain assets of Perry-Smith and certain personnel became associated with Crowe.
Management Commentary, Risks, and Contingencies
Audit History and Disagreements:
- Perry-Smith's reports for the fiscal years ended December 31, 2010 and 2009 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- There were no disagreements between the Company and Perry-Smith during the fiscal years ended December 31, 2010 and 2009, or through November 1, 2011, regarding accounting principles, financial statement disclosure, or auditing scope.
- No "reportable events" as described in Item 304(a)(1)(v) of Regulation S-K occurred during the relevant periods.
Consultations with New Auditor:
- Neither the Company nor anyone acting on its behalf consulted Crowe Horwath LLP regarding the application of accounting principles to specified transactions or the type of audit opinion that might be rendered prior to the engagement.
- Crowe did not provide written reports or oral advice that were important factors in the Company's decision-making on accounting or auditing issues prior to the engagement.
Important Facts for Investor Verification
- Verify the transition timeline and any potential impact on the audit of the 2011 fiscal year due to the auditor change.
- Review the attached letter from Perry-Smith LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the lack of disagreements.
- Confirm that the acquisition of assets by Crowe from Perry-Smith does not introduce undisclosed liabilities or contingent risks to the Company.