What is the date of the earliest event reported regarding changes in the certifying accountant for Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
On December 8, 2017, KPMG LLP ("KPMG") resigned as the independent registered public accounting firm of Liberty Tax, Inc. (the "Company"), effective immediately, and KPMG's resignation was accepted and approved by the Audit Committee of the Board of Directors of the Company (the "Board"). The Company is currently in the process of finding a successor independent registered public accounting firm in the hope that the Company's financial statements for the second quarter ended October 31, 2017 can be completed with as little delay as possible.
KPMG's reports on the Company's financial statements for the fiscal years ended April 30, 2017 and April 30, 2016 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. In addition, there were no disagreements between the Company and KPMG on accounting principles or practices, financial statement disclosure or auditing scope or procedure, which, if not resolved to the satisfaction of KPMG, would have caused them to make reference to the disagreement in their reports for such periods, or any subsequent interim period preceding KPMG's resignation. The Company will authorize KPMG to respond fully to the inquiries of the successor independent registered public accounting firm, which has yet to be selected.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the earliest event regarding changes in their certifying accountant occurred on December 8, 2017. On this date, KPMG LLP resigned as the independent registered public accounting firm for Liberty Tax, Inc., which was accepted and approved by the Audit Committee of the Board of Directors.
This change in accounting firms may raise concerns for potential Ledgers franchisees. It is important to note that the FDD states that the company is in the process of finding a successor independent registered public accounting firm to complete the financial statements for the second quarter ended October 31, 2017.
Furthermore, the document mentions that KPMG's reports for the fiscal years ended April 30, 2017, and April 30, 2016, did not contain any adverse opinions, disclaimers, qualifications, or modifications regarding uncertainty, audit scope, or accounting principles. Additionally, there were no disagreements between the company and KPMG on accounting matters that would have caused KPMG to reference the disagreement in their reports. This information could be reassuring, as it suggests that the resignation was not due to disagreements over accounting practices. However, prospective franchisees should still investigate the reasons behind the change and the implications for the accuracy and reliability of Ledgers's financial reporting.