Business Context and Reporting Period
Company: Melco Resorts & Entertainment Limited
Filing Type: Form 6-K (Report of Foreign Issuer)
Date: July 24, 2017
Reporting Period: Month of July 2017
This filing discloses a material corporate governance change regarding the appointment of a new independent registered public accounting firm.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This document is a notification of an auditor change rather than a financial results report.
Material Changes
- Change in Certifying Accountant: On July 17, 2017, the Board of Directors approved the appointment of Ernst & Young to replace Deloitte Touche Tohmatsu as the Company's independent registered public accounting firm, effective immediately.
- Scope of Change: Ernst & Young will also replace Deloitte as the independent accountants for Melco Resorts Finance Limited, Studio City Finance Limited, and Studio City Investments Limited.
- Reason for Change: The change followed a periodic tendering process recommended by the Audit Committee. The Board confirmed there were no disagreements with Deloitte regarding accounting principles, audit scope, or financial reporting.
Outlook, Risks, and Contingencies
- Audit History: Deloitte's audit reports for the years ended December 31, 2016, 2015, and 2014 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Internal Controls: Deloitte's reports on the effectiveness of internal control over financial reporting for 2016 and 2015 were unqualified.
- Consultations: No consultations occurred between the Company and Ernst & Young regarding accounting principles or audit opinions prior to the appointment. No reportable events or disagreements were identified during the transition period.
Key Facts for Investor Verification
- Verify the effective date of the auditor transition (July 17, 2017).
- Confirm that the change was driven by a routine tendering process rather than disputes over financial reporting.
- Note that the new auditor, Ernst & Young, will cover the parent company and three specific subsidiaries.
- Review subsequent filings for the first financial statements audited by Ernst & Young.