What is Item 4.01 of this report about in relation to Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 4.01. Changes in Registrants Certifying Accountant.
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' 2025 Franchise Disclosure Document, Item 4.01 discusses changes in the registrant's certifying accountant. Specifically, on December 8, 2017, KPMG LLP resigned as the independent registered public accounting firm for Liberty Tax, Inc., effective immediately. This resignation was accepted and approved by the Audit Committee of the Board of Directors. At the time of this report, Liberty Tax, Inc. was in the process of finding a successor independent registered public accounting firm. The aim was to complete the company's financial statements for the second quarter ended October 31, 2017, with minimal delay.
Notably, 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. These reports were also not qualified or modified regarding uncertainty, audit scope, or accounting principles. Furthermore, there were no disagreements between Liberty Tax, Inc. and KPMG on accounting principles, practices, financial statement disclosure, or auditing scope or procedure that would have caused KPMG to reference any disagreement in their reports.
Liberty Tax, Inc. stated it would authorize KPMG to respond fully to inquiries from the incoming independent registered public accounting firm, which had yet to be selected at the time of this filing. This information is presented in a report filed with the United States Securities and Exchange Commission.