Business Context and Reporting Period
This Form 8-K is a current report filed by International Seaways, Inc. on May 24, 2017. The filing addresses a corporate governance matter regarding the change of the company's independent registered public accounting firm for the fiscal year ending December 31, 2017.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the auditor transition and does not contain financial statement data.
Material Changes
- Auditor Change: The Audit Committee approved the engagement of Ernst & Young LLP ("EY") and dismissed PricewaterhouseCoopers LLP ("PwC") as the independent registered public accounting firm.
- Process: The decision followed a comprehensive, competitive process involving several firms, including the incumbent PwC.
Outlook, Risks, and Management Commentary
- Audit History: PwC's audit reports for fiscal years 2016 and 2015 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Disagreements: There were no disagreements with PwC on accounting principles, practices, disclosures, or auditing scope/procedures during the 2015-2016 fiscal years or the interim period through May 24, 2017.
- Reportable Events: No "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K occurred during the relevant periods.
- Independence: The Audit Committee concluded that EY has no commercial relationship with the Company that would impair its independence.
- Consultations: The Company did not consult with EY on matters set forth in Item 304(a)(2) of Regulation S-K during the relevant periods.
Key Facts for Investor Verification
- Verify the effective date of the engagement with Ernst & Young LLP.
- Review the letter from PricewaterhouseCoopers LLP (Exhibit 16.1) to confirm their agreement with the Company's disclosures regarding the dismissal.
- Confirm that no undisclosed disagreements or reportable events exist between the Company and the former auditor.