Business Context and Reporting Period
This Form 8-K is a current report filed by U.S. Auto Parts Network, Inc. (Carparts.Com, Inc.) on June 21, 2010. The filing 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 document focuses exclusively on the transition of the external auditor.
Material Changes
- Dismissal of Auditor: On June 21, 2010, the Audit Committee dismissed Ernst & Young LLP (E&Y) as the independent registered public accounting firm.
- Engagement of New Auditor: On June 9, 2010, the Audit Committee approved the engagement of Deloitte & Touche LLP (Deloitte) as the new independent registered public accounting firm for the fiscal year ending January 1, 2011.
- Audit History: E&Y's reports for the fiscal years ended January 2, 2010, and December 31, 2008, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: The company reported no disagreements with E&Y on accounting principles, practices, or financial statement disclosures during the two most recent fiscal years or the period from January 3, 2010, through June 21, 2010.
- Consultations: No consultations were held with Deloitte regarding accounting principles or audit opinions prior to their engagement.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, management outlook, or specific risk factors beyond the standard disclosure regarding the change in auditors. The company confirmed that E&Y was provided a copy of the Form 8-K prior to filing and requested a letter of response, which is attached as Exhibit 16.1.
Investor Verification Checklist
- Review Exhibit 16.1 (the letter from E&Y) to confirm whether the former auditor agrees with the company's statements regarding the dismissal.
- Verify the effective date of Deloitte's engagement and the scope of their initial review.
- Monitor future filings for any restatements of prior financial periods or changes in accounting policies following the auditor transition.
- Check subsequent 10-K or 10-Q filings for the first financial statements audited by Deloitte.