8-KFinancial Events

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Auditor Change (Feb 25, 2021)

Filed February 25, 2021For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens Bancshares Inc. /de/ (FCNCA) announced a change in its independent auditors via an 8-K filing on February 25, 2021. The company's Audit Committee dismissed Dixon Hughes Goodman LLP (DHG), who had served as auditors since 2004, and appointed KPMG LLP as the new independent accountants for the 2021 fiscal year. This change was approved by the Audit Committee following a competitive proposal process. Importantly, the filing explicitly states there were no disagreements with DHG regarding accounting principles, financial statement disclosures, or auditing procedures, nor were there any "reportable events" that would necessitate a qualification or modification of DHG's previous audit reports, other than a standard disclosure regarding the adoption of new credit loss accounting standards (ASC Topic 326) for the 2020 fiscal year. Furthermore, FCNCA did not consult with KPMG on any accounting matters or disagreements prior to their engagement.

Key Highlights

  • 1First Citizens Bancshares Inc. /de/ (FCNCA) has changed its independent auditor, dismissing Dixon Hughes Goodman LLP (DHG) and engaging KPMG LLP for the 2021 fiscal year.
  • 2DHG had served as FCNCA's independent accountants since 2004.
  • 3The change in auditors was approved by the company's Audit Committee.
  • 4There were no disagreements with DHG on accounting principles, financial statement disclosures, or auditing procedures.
  • 5There were no "reportable events" requiring specific disclosure related to the dismissal of DHG.
  • 6DHG's audit reports for 2020 and 2019 did not contain adverse opinions or disclaimers of opinion.
  • 7A standard disclosure was made in the 2020 audit report regarding the adoption of ASC Topic 326 for credit losses.

Frequently Asked Questions

The company's Audit Committee approved the change following a competitive proposal process. Dixon Hughes Goodman LLP was dismissed after serving as the independent accountant since 2004, and KPMG LLP was appointed for the 2021 fiscal year.

No, the filing explicitly states that there were no disagreements with Dixon Hughes Goodman LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure. Additionally, there were no "reportable events" as defined by SEC regulations.

No, the filing indicates that neither the company nor anyone on its behalf consulted with KPMG LLP regarding the application of accounting principles to any specified transaction, the type of audit opinion that might be rendered, or any disagreements or reportable events prior to KPMG's engagement.

The note was a standard disclosure required by the adoption of Accounting Standards Codification Topic 326, Financial Instruments – Credit Losses, effective January 1, 2020. This change in accounting method was not a disagreement but a routine update to financial reporting standards.