Summary
NXP Semiconductors N.V. (NXPI) announced a change in its independent registered public accounting firm through an 8-K filing on November 21, 2019. The Board of Directors, on the recommendation of the Audit Committee, decided not to re-appoint KPMG Accountants N.V. ('KPMG') as the company's auditor for the 2020 Annual General Meeting of Shareholders. KPMG has served as the company's auditor since 2009 and will continue its audit for the fiscal year ending December 31, 2019. Concurrently, the company plans to appoint Ernst & Young Accountants LLP ('EY') as its new independent registered public accounting firm for the fiscal years ending December 31, 2020 through December 31, 2022, subject to shareholder approval and EY's client acceptance procedures. This change follows a competitive process conducted by the Audit Committee. Importantly, the filing states there were no disagreements or reportable events with KPMG during their tenure that would have impacted their audit reports. Investors should note that this is a standard auditor rotation and typically does not signal underlying financial issues.
Key Highlights
- 1NXP Semiconductors N.V. is changing its independent registered public accounting firm.
- 2KPMG Accountants N.V. will not be recommended for re-appointment at the 2020 Annual General Meeting of Shareholders.
- 3KPMG has served as the company's auditor since 2009.
- 4KPMG will complete their audit for the fiscal year ending December 31, 2019.
- 5Ernst & Young Accountants LLP ('EY') is proposed to be appointed as the new auditor for fiscal years 2020-2022.
- 6The change followed a competitive process overseen by the Audit Committee.
- 7There were no disagreements or reportable events with KPMG during their tenure.