Business Context and Reporting Period
This Form 8-K is a current report filed by Portfolio Recovery Associates, Inc. (PRA Group Inc) on March 8, 2007. The filing addresses a material change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The report explicitly states that no financial statements or pro-forma financial information are included.
Material Changes
- Dismissal of Previous Auditor: On March 8, 2007, the Audit Committee dismissed PricewaterhouseCoopers LLP (PwC) as the independent registered public accounting firm, effective immediately.
- Appointment of New Auditor: On March 8, 2007, the Audit Committee appointed KPMG LLP as the new independent registered public accounting firm, effective immediately.
- Audit History: PwC's reports for fiscal years ended December 31, 2005, and 2006, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: The company reported no disagreements with PwC on accounting principles, practices, disclosures, or auditing scope/procedures during the relevant periods.
- Consultations: The company has not consulted with KPMG regarding matters described in Item 304(a)(2)(i) or (ii) of Regulation S-K prior to their appointment.
Guidance, Outlook, and Risks
The filing contains no management guidance, financial outlook, or discussion of operational risks. The primary disclosure relates to the procedural change in audit oversight. A letter from PwC concurring with the company's statements is attached as Exhibit 16.
Investor Verification Checklist
- Verify the reasons for the auditor change by reviewing the attached letter from PricewaterhouseCoopers LLP (Exhibit 16).
- Confirm that no undisclosed disagreements or reportable events occurred between the company and PwC during the 2005 and 2006 fiscal years.
- Monitor future filings for the first financial statements audited by KPMG LLP to ensure continuity in reporting standards.