Business Context and Reporting Period
This Form 8-K Current Report is filed by Citizens, Inc. on June 16, 2021. The filing discloses a change in the Company's independent registered public accounting firm. The Company is incorporated in Colorado and maintains its principal executive offices in Austin, Texas.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Dismissal of Prior Accountant: On June 16, 2021, the Company dismissed Deloitte & Touche LLP as its independent registered public accounting firm.
- Engagement of New Accountant: On June 18, 2021, the Company engaged Grant Thornton LLP to serve as its independent registered public accounting firm for the fiscal year ending December 31, 2021.
- Audit Committee Approval: The decision was approved by the Company's audit committee, which holds sole authority over such engagements.
Management Commentary, Risks, and Contingencies
Reason for Change: Grant Thornton was selected based on an evaluation of capabilities deemed best suited to the Company's size and market position.
Audit History and Disagreements:
- Deloitte's reports for the years ended December 31, 2020 and 2019 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- There were no disagreements with Deloitte on accounting principles, practices, financial statement disclosures, or auditing scope/procedures for the periods ended December 31, 2020, December 31, 2019, and March 31, 2021.
- No "reportable events" occurred during these periods.
Consultations: The Company did not consult Grant Thornton regarding accounting principles, proposed transactions, or potential audit opinions prior to the engagement. No matters subject to disagreement or reportable events were discussed with Grant Thornton.
Deloitte Response: Deloitte was provided a copy of this filing and requested to submit a letter to the SEC. A letter from Deloitte dated June 22, 2021, is filed as Exhibit 16.1.
Investor Verification Checklist
- Review Exhibit 16.1 (Deloitte's letter) to confirm if the former auditor agrees with the Company's statements regarding the change.
- Verify the effective date of Grant Thornton's engagement (June 18, 2021) against the upcoming fiscal year-end reporting schedule.
- Monitor future filings for any restatements or qualifications in the financial statements prepared under the new auditor.