Item 4.01. Change in Registrant's Certifying Accountant.
IntriCon Corporation (the "Company") conducted a competitive process to
determine the Company's independent registered public accounting firm for the
Company's fiscal year ending December 31, 2020 and invited several independent
registered public accounting firms to participate in this process, including the
Company's current independent registered public accounting firm, Baker Tilly
Virchow Krause, LLP ("Baker Tilly").
Following review of proposals from the independent registered public accounting
firms that participated in the process, on January 21, 2020, the Audit Committee
(the "Audit Committee") of the Board of Directors of the Company approved the
selection of Deloitte & Touche LLP ("Deloitte") as the Company's independent
registered public accounting firm for the Company's fiscal year ending December
31, 2020, subject to the completion of Deloitte's standard client acceptance
procedures and execution of an engagement letter, and determined to terminate
the Company's relationship with Baker Tilly as the Company's independent
registered public accounting firm. The selection of Deloitte will be presented
to the shareholders for ratification at the Company's 2020 Annual Meeting of
Shareholders.
Baker Tilly will continue as the Company's independent registered public
accounting firm for the purpose of completing the audit of the Company's
financial statements for the year ended December 31, 2019 and will be dismissed
upon completion of such audit. Upon completion of the audit services, the
Company will file an amendment to this Form 8-K with the specific date of the
dismissal and an update to the disclosures required by Item 304(a) of Regulation
S-K through such date.
Baker Tilly's reports on the Company's consolidated financial statements as of
and for the fiscal years ended December 31, 2018 and December 31, 2017 did not
contain any adverse opinion or disclaimer of opinion, nor were they qualified or
modified as to uncertainty, audit scope, or accounting principles, except that
Baker Tilly's report on the Company's consolidated financial statements as of
and for the fiscal year ended December 31, 2018 included a paragraph stating:
"As discussed in Notes 1 and 5 to the consolidated financial statements, the
Company has changed its method of accounting for revenue for all periods
presented due to the full retrospective adoption of FASB Accounting Standards
Update No. 2014-09 (Topic 606), Revenue from Contracts with Customers, and
related amendments."
During the fiscal years ended December 31, 2018 and December 31, 2017, and the
subsequent interim periods through January 21, 2020, there were: (i) no
disagreements within the meaning of Item 304(a)(1)(iv) of Regulation S-K and the
related instructions between the Company and Baker Tilly on any matters of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to Baker Tilly's satisfaction, would
have caused Baker Tilly to make reference thereto in its reports; and (ii) no
reportable events within the meaning of Item 304(a)(1)(v) of Regulation S-K.
The Company requested Baker Tilly to furnish a letter addressed to the
Securities and Exchange Commission stating whether or not it agrees with the
above statements. A copy of Baker Tilly's letter, dated January 27, 2020, is
filed as Exhibit 16.1 to this Form 8-K.
During the fiscal years ended December 31, 2018 and December 31, 2017 and the
subsequent interim periods through January 21, 2020, neither the Company nor
anyone on its behalf has consulted with Deloitte regarding: (i) the application
of accounting principles to a specific transaction, either completed or
proposed, or the type of audit opinion that might be rendered on the Company's
financial statements, and neither a written report nor oral advice was provided
to the Company that Deloitte concluded was an important factor considered by the
Company in reaching a decision as to any accounting, auditing, or financial
reporting issue; (ii) any matter that was the subject of a disagreement within
the meaning of Item 304(a)(1)(iv) of Regulation S-K and the related
instructions; or (iii) any matter that was a reportable event within the meaning
of Item 304(a)(1)(v) of Regulation S-K.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
16.1 Baker Tilly Virchow Krause, LLP letter dated January 27, 2020.
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