Business Context and Reporting Period
This Form 8-K Current Report was filed by Kite Realty Group Trust and Kite Realty Group, L.P. on November 20, 2019. The filing discloses a corporate governance change regarding the appointment of a new independent registered public accounting firm for the fiscal year ending December 31, 2020.
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 the change in the registrant's certifying accountant and does not contain financial performance data.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2020.
- Termination of Prior Auditor: The engagement of Ernst & Young LLP will end effective upon the completion of their audit of the consolidated financial statements for the fiscal year ending December 31, 2019, and the subsequent filing of the Form 10-K.
- Selection Process: KPMG was selected following a competitive review process of proposals from independent registered public accounting firms.
Outlook, Risks, and Management Commentary
Management Commentary: The Audit Committee conducted a regular review of third-party service provider engagements. The transition to KPMG is subject to the execution of an engagement letter.
Historical Audit Quality: The audit reports issued by Ernst & Young for the fiscal years ended December 31, 2018, and 2017, did not contain any adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
Disagreements and Consultations:
- There were no disagreements with Ernst & Young on matters of accounting principles, practices, financial statement disclosure, or auditing scope/procedure during the relevant periods.
- There were no reportable events as described in Item 304(a)(1)(v) of Regulation S-K.
- The Company did not consult with KPMG regarding accounting principles or audit opinions prior to this appointment.
Investor Verification Checklist
- Verify the execution of the engagement letter between Kite Realty Group Trust and KPMG LLP.
- Review the letter from Ernst & Young LLP (Exhibit 16.1) to confirm their agreement with the disclosures regarding the change in accountant.
- Monitor the upcoming Form 10-K filing for the fiscal year ended December 31, 2019, to confirm the finalization of the auditor transition.