Summary
This Form 8-K filing from Apple Inc. announces a significant change in its independent auditor. Effective February 26, 2009, Apple's Audit Committee has engaged Ernst & Young LLP (EY) to serve as the company's independent registered public accounting firm for the remainder of fiscal year 2009, replacing KPMG LLP, which had served in that capacity since fiscal 1997. This change follows a competitive review process conducted by the Audit Committee as part of its previously announced policy to review auditor appointments every five years. The filing clarifies that the dismissal of KPMG was not due to any disagreements on accounting principles, financial statement disclosures, or auditing procedures, nor were there any "reportable events" as defined by SEC regulations. KPMG's audit reports for fiscal years 2007 and 2008 did not contain adverse, qualified, or disclaimed opinions, though they did note Apple's adoption of new accounting standards for income taxes and share-based payments. EY was engaged after a review of auditor independence and commercial relationships, with no impairments found.
Key Highlights
- 1Apple Inc. has changed its independent registered public accounting firm, appointing Ernst & Young LLP (EY) and dismissing KPMG LLP.
- 2The change is effective February 26, 2009, for the remainder of fiscal year 2009.
- 3This decision resulted from a competitive review process undertaken by Apple's Audit Committee, as per its five-year auditor review policy.
- 4KPMG LLP had served as Apple's independent auditor since fiscal year 1997.
- 5There were no disagreements with KPMG on accounting principles, financial statement disclosures, or auditing procedures.
- 6No 'reportable events' (as defined by Regulation S-K) occurred with KPMG during the relevant periods.
- 7EY's independence was assessed and confirmed by the Audit Committee prior to engagement.