Business Context and Reporting Period
This Form 8-K is filed by the CTS Corporation Retirement Savings Plan, not CTS Corporation itself. The report covers the event date of April 26, 2007, with the filing date of June 21, 2007. The document addresses a change in the Plan's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. This report is strictly procedural regarding the appointment of an auditor for the retirement plan.
Material Changes
The primary material change is the replacement of the Plan's independent auditor:
- Previous Auditor: McGladrey & Pullen LLP notified the Plan on April 26, 2007, that they could not stand for re-appointment for the plan year ended December 31, 2006.
- Reason for Change: Independence was impaired due to the provision of tax services to a person in a financial reporting oversight role at CTS Corporation.
- New Auditor: BKD, LLP was appointed as the new independent registered public accounting firm effective June 13, 2007.
Guidance, Outlook, and Risks
Audit History and Disagreements:
- McGladrey & Pullen's reports for the years ended December 31, 2005, and 2006 contained no adverse opinions, disclaimers, or qualifications.
- There were no disagreements with McGladrey & Pullen regarding accounting principles, financial statement disclosure, or auditing scope/procedures during the relevant periods.
- No reportable events occurred during the years ended December 31, 2005 and 2006, or through June 21, 2007.
Consultation with New Auditor:
- The Plan has not consulted with BKD, LLP regarding the application of accounting principles or the type of audit opinion that might be rendered.
- BKD, LLP did not provide written reports or oral advice considered important factors in reaching decisions on accounting or auditing issues.
Investor Verification Checklist
- Verify that the filing pertains to the Retirement Savings Plan and not the operating company's financial statements.
- Confirm the appointment of BKD, LLP as the new auditor for the Plan.
- Note that the departure of the previous auditor was due to an independence impairment related to tax services, not audit disagreements.
- Check for the subsequent filing of the letter from McGladrey & Pullen addressed to the SEC, as referenced in the document.