Chegg, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Chegg, Inc. on March 9, 2018. The report discloses a material change in the Company's independent registered public accounting firm. The filing covers events occurring between February 27, 2018, and March 12, 2018.
Key Financial Metrics
This filing does not contain financial performance data. There are no disclosures regarding revenue, profit, cash flow, margins, debt, or liquidity. The filing text does not provide a clear value for any financial metric.
Material Changes
- Dismissal of Previous Auditor: The Audit Committee terminated the engagement of Ernst & Young LLP (EY) as the independent registered public accounting firm, effective March 12, 2018.
- Appointment of New Auditor: The Audit Committee appointed Deloitte & Touche LLP (Deloitte) as the new independent registered public accounting firm, effective March 12, 2018.
- Process: The decision followed a Request for Proposal (RFP) issued on February 27, 2018, to evaluate service levels, fees, and the benefits/risks of changing auditors.
Management Commentary, Risks, and Contingencies
Management and the Audit Committee stated that there were no disagreements with EY regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years or the subsequent interim period. EY's reports for the years ended December 31, 2017, and 2016, did not contain adverse opinions, disclaimers, or qualifications. No reportable events occurred during this period. The Company confirmed that no consultations with Deloitte occurred regarding matters described in Regulation S-K prior to the appointment.
Investor Verification Checklist
- Verify the effective date of the auditor transition (March 12, 2018).
- Review the letter from Ernst & Young LLP (Exhibit 16.01) to confirm their agreement with the Company's disclosures regarding the dismissal.
- Confirm that no undisclosed disagreements or reportable events exist between the Company and the former auditor.
- Monitor future filings for the first audit report issued by Deloitte & Touche LLP.