Business Context and Reporting Period
This Form 8-K is a current report filed by The Eastern Company (Eastern Co) on June 10, 2009. The filing discloses a material corporate governance event regarding the change of 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 is strictly procedural regarding the appointment of auditors.
Material Changes
- Termination of Auditor: The Audit Committee recommended and the Board of Directors approved the replacement of UHY LLP as the independent registered public accounting firm, effective June 10, 2009.
- Appointment of New Auditor: The Audit Committee recommended and the Board of Directors approved the appointment of Fiondella, Milone & LaSaracina LLP as the new independent registered public accounting firm, effective June 10, 2009.
- Audit History: Reports issued by UHY LLP for the fiscal years ended January 3, 2009, and December 29, 2007, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: The company reported no disagreements with UHY LLP on accounting principles, practices, financial statement disclosure, or auditing scope/procedures during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary on business operations. Regarding risks and contingencies, the company explicitly stated that no "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K occurred during the fiscal years ended January 3, 2009, or December 29, 2007, or through the date of the filing. Additionally, no consultations were made with the new auditor regarding accounting principles or matters that were subjects of disagreement with the former auditor.
Investor Verification Checklist
- Verify the effective date of the auditor change (June 10, 2009) against the company's press release dated June 12, 2009.
- Review the attached letter from UHY LLP (Exhibit 16) to confirm their agreement with the company's statements regarding the lack of disagreements.
- Confirm that the new auditor, Fiondella, Milone & LaSaracina LLP, has no prior undisclosed consultations with the company regarding accounting matters.
- Monitor future filings for the first audit report issued by the new accounting firm to ensure continuity in financial reporting standards.