01—Abstract
Summary
Summary of the 8-K filed March 3, 2020. Cited figures are marked; the original filing is the authoritative source.
Cadence Design Systems Inc. (CDNS) has announced a change in its independent registered public accounting firm.
Effective February 26, 2020, the Audit Committee dismissed KPMG LLP and appointed PricewaterhouseCoopers LLP (PwC) as the new auditor for the fiscal year ending January 2, 2021. This change follows a competitive process conducted by the Audit Committee. Importantly, the company stated that there were no disagreements with KPMG on any accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years or the interim period.
Similarly, there were no "reportable events" that would require disclosure. Cadence has obtained a letter from KPMG confirming their agreement with these statements, which is filed as an exhibit. The company also stated that it had not consulted with PwC on any significant accounting or auditing matters prior to their appointment.
02—Key points
Key Highlights
- Cadence Design Systems has changed its independent registered public accounting firm, dismissing KPMG LLP and appointing PricewaterhouseCoopers LLP (PwC).
- The change is effective as of February 26, 2020, and PwC will serve as the auditor for the fiscal year ending January 2, 2021.
- The dismissal of KPMG followed a competitive review process by Cadence's Audit Committee.
- Cadence confirmed that there were no disagreements with KPMG on accounting principles, financial statement disclosures, or auditing scope/procedures.
- There were also no "reportable events" as defined by SEC regulations during the relevant periods.
- KPMG has provided a letter to the SEC confirming their agreement with Cadence's statements regarding the dismissal.
- Cadence did not consult with PwC on any significant accounting or auditing matters prior to their appointment.
03—Questions
Frequently Asked Questions
Why did Cadence Design Systems change its auditor?
Cadence Design Systems changed its auditor as a result of a competitive process conducted by its Audit Committee to select the independent registered public accounting firm for the fiscal year ending January 2, 2021. The committee dismissed KPMG LLP and appointed PricewaterhouseCoopers LLP (PwC).
Were there any disagreements or issues with the previous auditor, KPMG?
No, Cadence Design Systems stated that there were no disagreements with KPMG on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures. Furthermore, there were no 'reportable events' during the past two fiscal years or the subsequent interim period.
Does this change in auditor indicate any financial irregularities at Cadence?
Based on the filing, there is no indication of financial irregularities. Cadence explicitly stated that there were no disagreements with KPMG and no reportable events. The change appears to be part of a standard competitive review process by the Audit Committee.
Has Cadence consulted with PwC on accounting matters before their appointment?
Cadence stated that neither they nor anyone acting on their behalf consulted with PwC regarding accounting principles, specific transactions, or the type of audit opinion prior to PwC's appointment. PwC did not provide any advice that was considered a significant factor in Cadence's decision-making on accounting or auditing issues.
04—Continue