Summary
General Electric Company (GE) announced a significant change in its independent registered public accounting firm. Effective for the fiscal year ending December 31, 2021, Deloitte & Touche LLP ("Deloitte") will replace KPMG LLP ("KPMG") as GE's auditor. This decision follows an extensive evaluation process initiated by GE's Audit Committee, which had been considering an audit firm rotation. KPMG will continue to serve as GE's auditor for the fiscal year ending December 31, 2020. The filing explicitly states that there were no disagreements or "reportable events" with KPMG during the fiscal years 2018 and 2019, or in the interim periods leading up to the auditor change. This is a standard disclosure to assure investors that the change is not due to any accounting disputes or audit concerns with the outgoing auditor. A letter from KPMG confirming these statements is included as an exhibit.
Key Highlights
- 1GE has appointed Deloitte & Touche LLP as its independent auditor for the fiscal year ending December 31, 2021.
- 2KPMG LLP will continue to serve as GE's auditor for the fiscal year ending December 31, 2020.
- 3The change in auditor was initiated by GE's Audit Committee as part of a review of potential audit firm rotation.
- 4No disagreements or reportable events occurred between GE and KPMG during fiscal years 2018, 2019, and the subsequent interim periods.
- 5The transition to Deloitte is subject to standard client acceptance procedures and the execution of an engagement letter.
- 6KPMG's reports for fiscal years 2018 and 2019 did not contain adverse opinions or modifications, other than an emphasis-of-matter paragraph regarding revenue recognition changes in 2018.