What was the effective date of KPMG's resignation as the independent registered public accounting firm for Liberty Tax, Inc., the parent company of 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, KPMG LLP resigned as the independent registered public accounting firm of Liberty Tax, Inc. on December 8, 2017. The resignation was effective immediately and was accepted and approved by the Audit Committee of the Board of Directors of the Company. At the time of the FDD, Liberty Tax, Inc. was in the process of finding a successor independent registered public accounting firm.
KPMG's reports on Liberty Tax, Inc.'s financial statements for the fiscal years ended April 30, 2017, and April 30, 2016, did not contain any adverse opinions or disclaimers of opinion, nor were they qualified or modified regarding uncertainty, audit scope, or accounting principles. Furthermore, there were no disagreements between Liberty Tax, Inc. and KPMG on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have caused KPMG to reference the disagreement in their reports.
Liberty Tax, Inc. authorized KPMG to respond fully to inquiries from the successor independent registered public accounting firm, which had yet to be selected at the time of this disclosure. This change in accounting firms and the reasons behind it could be material information for a prospective Ledgers franchisee, as it relates to the financial oversight and reporting of Ledgers's parent company.