Why did Bloom Energy change its independent auditor from PwC to Deloitte?

Bloom Energy's Audit Committee dismissed PwC without any stated disagreements on accounting principles or financial disclosures. The company appointed Deloitte due to their deep energy industry experience, expansive global network, and understanding of Bloom Energy's business, aiming for a seamless transition. While Deloitte had provided advisory services, this engagement was separate from their new role as auditor.

Were there any disagreements or problems that led to the dismissal of PwC?

According to the filing, there were no disagreements with PwC on any matter of accounting principles, practices, financial statement disclosure, or auditing scope/procedures. The only exception noted was a previously disclosed material weakness in the company's internal control over financial reporting related to the control environment and accounting expertise.

Did Deloitte's prior advisory work for Bloom Energy influence their appointment as auditor?

The filing notes that Deloitte provided advisory services on the accounting treatment for Managed Services Agreements and lease accounting standards in late 2019 and early 2020. While these consultations occurred, the company emphasizes Deloitte's extensive review process and suitability for the audit role due to industry experience and business understanding as key factors in their appointment.

What is the significance of the material weakness in internal controls mentioned in the filing?

The material weakness relates to the company's control environment and its capacity to evaluate complex transactions. While not the direct cause for auditor dismissal, it is a point of concern for investors regarding the reliability of financial reporting and suggests ongoing efforts by the company to strengthen its internal controls.

BE 8-K: Financial Events

Summary

Bloom Energy Corporation (BE) announced a significant change in its auditor on September 4, 2020, by filing an 8-K report. The company's Audit Committee approved the dismissal of PricewaterhouseCoopers LLP (PwC) as its independent registered public accounting firm, effective September 3, 2020. This change follows a period where there were no stated disagreements or reportable events that would typically necessitate such a change, other than a previously disclosed material weakness in internal controls. Concurrently, the company appointed Deloitte & Touche LLP (Deloitte) as its new independent auditor for the fiscal year ending December 31, 2020. The decision to engage Deloitte was based on their energy industry experience and understanding of Bloom Energy's business, aiming for a seamless transition. While Deloitte had provided advisory services on accounting treatments for certain agreements in late 2019 and early 2020, these consultations are noted but do not appear to be the primary driver of the auditor switch, as per the filing.

Key Highlights

1Bloom Energy dismissed PricewaterhouseCoopers LLP (PwC) as its independent auditor.
2Deloitte & Touche LLP (Deloitte) has been appointed as the new independent auditor for the fiscal year ending December 31, 2020.
3The dismissal of PwC occurred without any reported disagreements on accounting principles or financial statement disclosures.
4A material weakness in internal control over financial reporting, related to the control environment and accounting expertise, was previously disclosed and noted as an exception.
5The company cited Deloitte's energy industry experience and understanding of Bloom Energy's business as reasons for the appointment.
6Deloitte had previously provided advisory services to Bloom Energy on accounting treatments for Managed Services Agreements and lease accounting standards.
7A letter from PwC agreeing with the company's statements in the filing is included as an exhibit.

Bloom Energy Corp 8-K Report, Auditor Change (Sep 4, 2020)

Summary

Key Highlights

Frequently Asked Questions