Business Context and Reporting Period
This Form 8-K is a current report filed by Avenue Income Credit Strategies Fund (the "Fund") on November 21, 2017. The filing discloses a change in the Fund's independent registered public accounting firm. The Fund is incorporated in Delaware and operates as a closed-end investment company.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the external auditor.
Material Changes
- Dismissal of Auditor: The Board of Trustees approved the dismissal of PricewaterhouseCoopers LLP ("PwC") on September 14, 2017. The dismissal was communicated on November 21, 2017.
- Engagement of New Auditor: The Board approved the engagement of KPMG LLP ("KPMG") as the new independent registered public accounting firm for the fiscal year ending October 31, 2017, effective November 21, 2017.
- Audit History: PwC's reports for the fiscal years ended October 31, 2016, and October 31, 2015, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainties, audit scope, or accounting principles.
- Disagreements: There were no disagreements between the Fund and PwC on accounting principles, financial disclosure, or auditing scope during the two most recent fiscal years or the subsequent interim period.
- Reportable Events: No "reportable events" occurred during the relevant periods as defined by Regulation S-K.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. The primary risk disclosed is the transition of the external audit function. The Fund confirmed that no consultations occurred with KPMG regarding accounting principles or audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the effective date of KPMG's engagement (November 21, 2017) for the fiscal year ending October 31, 2017.
- Review the letter from PwC (Exhibit 16.1) to confirm their agreement with the Fund's disclosures regarding the dismissal.
- Confirm that no undisclosed disagreements or reportable events existed during PwC's tenure.
- Monitor future filings for the first audit report issued by KPMG.