Business Context and Reporting Period
This Form 8-K Current Report was filed by Radiant Logistics, Inc. (RLGT) on December 7, 2021. The filing primarily addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on auditor changes and historical internal control deficiencies rather than current financial performance metrics.
Material Changes
- Dismissal of Auditor: On December 7, 2021, the company dismissed BDO USA, LLP as its independent registered public accounting firm. The dismissal was approved by the Audit and Executive Oversight Committee.
- Engagement of New Auditor: On December 10, 2021, the company engaged Moss Adams LLP as its new independent registered public accounting firm.
- Audit Opinions: BDO's reports for fiscal years ended June 30, 2021, and 2020 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
Management Commentary, Risks, and Contingencies
The filing details significant material weaknesses in internal controls over financial reporting identified by management and noted by BDO:
- Fiscal Year 2021 Weaknesses:
- Deficiencies in controls over the recording and processing of revenues, lacking precision to ensure completeness and accuracy.
- Deficiencies in controls over the calculation of operating partner commissions, lacking precision to ensure completeness and accuracy.
- Fiscal Year 2020 Weaknesses:
- Deficiencies in the goodwill and intangibles impairment review process, specifically regarding the review of carrying values and the determination of triggering events. This weakness was remediated as of December 31, 2020.
- Disagreements: There were no disagreements between the company and BDO on accounting principles, practices, or auditing scope during the relevant periods.
- Consultations: No consultations occurred with the new auditor, Moss Adams, regarding accounting principles or reportable events prior to engagement.
Investor Verification Checklist
- Verify the status of remediation efforts for the material weaknesses in revenue recording and commission calculations identified for fiscal year 2021.
- Confirm the transition timeline and scope of work between BDO USA, LLP and Moss Adams LLP.
- Review the letter from BDO (Exhibit 16.1) to ensure no undisclosed disagreements exist regarding the company's financial reporting.
- Monitor future filings for any restatements of financial statements related to the identified internal control deficiencies.