Item 4.01. Changes in Registrant's Certifying Accountant.
The Audit Committee of the Board of Directors (the "Audit Committee") of Monster
Beverage Corporation (the "Company") has completed a process to review the
appointment of the Company's independent registered public accounting firm for
the fiscal year ending December 31, 2023.
As a result of this process, on January 11, 2023, the Audit Committee approved
the engagement of Ernst & Young LLP ("EY") as the Company's independent
registered public accounting firm for the Company's fiscal year ending
December 31, 2023, subject to the execution of an engagement letter. Deloitte &
Touche LLP ("Deloitte"), the Company's current independent registered public
accounting firm, will continue as the Company's independent registered public
accounting firm for the year ended December 31, 2022.
The audit reports of Deloitte on the Company's consolidated financial statements
for each of the two most recent fiscal years ended December 31, 2021 and 2020
did not contain an adverse opinion or a disclaimer of opinion and were not
qualified or modified as to uncertainty, audit scope, or accounting principles.
During the Company's fiscal years ended December 31, 2021 and 2020, and the
subsequent interim period through January 13, 2023, (i) there were no
disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the
related instructions thereto) between the Company and Deloitte on any matter of
accounting principles or practices, financial statement disclosures, or auditing
scope or procedures, which, if not resolved to Deloitte's satisfaction, would
have caused Deloitte to make reference to the subject matter of the
disagreements in connection with its reports on the Company's consolidated
financial statements for such fiscal years, and (ii) there were no reportable
events (as described in Item 304(a)(1)(v) of Regulation S-K).
In accordance with Item 304(a)(3) of Regulation S-K, the Company provided
Deloitte with a copy of this Current Report on Form 8-K and requested that
Deloitte furnish the Company with a letter addressed to the Securities and
Exchange Commission stating whether it agrees with the statements made by the
Company herein and, if not, stating the respects in which it does not agree. A
copy of Deloitte's letter, dated January 13, 2023, is attached as Exhibit 16.1
to this Current Report on Form 8-K.
During the fiscal years ended December 31, 2021 and 2020, and during the
subsequent interim period through January 13, 2023, neither the Company nor
anyone on its behalf consulted with EY regarding (i) the application of
accounting principles to a specified transaction, either completed or proposed,
or the type of audit opinion that might be rendered on the Company's
consolidated financial statements, and neither a written report nor oral advice
was provided to the Company that EY 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 either the subject of a
disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related
instruction thereto), or (iii) any reportable event (as described in Item
304(a)(1)(v) of Regulation S-K). On January 13, 2023, the Company issued a press
release announcing the above-described matters. A copy of the press release is
furnished as Exhibit 99.1 hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Letter from Deloitte & Touche LLP to the Securities and Exchange
Exhibit 16.1 Commission dated January 13, 2023.
Exhibit 99.1 Press Release dated January 13, 2023.
The cover page from this Current Report on Form 8-K, formatted in
Exhibit 104 iXBRL (Inline eXtensible Business Reporting Language).
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