Item 4.01 Changes in Registrant's Certifying Accountant.
(a) On January 28, 2020, IDT Corporation (the "Registrant") notified BDO USA,
LLP ("BDO") that the Registrant was dismissing BDO as its independent registered
public accounting firm, effective immediately. The Registrant's Audit Committee
of the Board of Directors approved the dismissal of BDO as the Registrant's
independent registered public accounting firm.
BDO's report on the Registrant's consolidated financial statements as of July
31, 2019 and 2018 and for the fiscal years ended July 31, 2019 and July 31, 2018
did not contain an adverse opinion or a disclaimer of opinion, nor was it
qualified or modified as to uncertainty, audit scope or accounting principles.
During the fiscal years ended July 31, 2019 and July 31, 2018 and the subsequent
interim period through January 28, 2020, there were no disagreements between the
Registrant and BDO on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of BDO, would have caused BDO
to make reference to the subject matter of the disagreements in connection with
its report on the Registrant's financial statements for such periods.
During the fiscal years ended July 31, 2019 and July 31, 2018 and the subsequent
interim period through January 28, 2020, there were no "reportable events", as
defined in Regulation S-K Item 304(a)(1)(v), except to note, for the year ended
July 31, 2019, that management identified a material weakness in the Company's
internal control over financial reporting related to its controls over
management review associated with non-income related taxes.
The Registrant has provided BDO with a copy of the above disclosures and is
requesting that BDO furnish the Registrant with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the foregoing
statements and, if not, stating the respects in which it does not agree. A copy
of BDO's letter, dated January 29, 2020, is attached as Exhibit 16.1 to this
Form 8-K.
(b) On January 28, 2020, the Registrant appointed Grant Thornton LLP ("GT") to
serve as the Registrant's independent registered public accounting firm, and to
audit the Registrant's consolidated financial statements for its fiscal year
ending July 31, 2020. The decision to engage GT was approved by the Registrant's
Audit Committee of the Board of Directors and was made after a competitive
bidding process and evaluation. During the Registrant's two most recent fiscal
years and the subsequent interim period through January 28, 2020, the Registrant
did not consult GT with respect to any of the matters or events listed in
Regulation S-K Item 304(a)(2)(i) or (ii).
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Document
16.1 Letter from BDO USA, LLP, dated January 29, 2020.
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