ARC Group Worldwide,Inc. (NASDAQ:ARCW) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01. Changes in Registrant’s Certifying Accountant
Story continues below
Previous independent registered public accounting firm
On March 13, 2019, the Audit Committee of the Board of Directors of ARC Group Worldwide, Inc. (the “Company”), notified Moss Adams LLP (“Moss Adams”) that it was dismissing Moss Adams as its independent registered public accounting firm effective immediately.
Moss Adams’ audit report on the consolidated financial statements for the fiscal year ended June 30 2018 did not contain any adverse opinion or disclaimer opinion, nor were the reports qualified or modified as to uncertainty, audit scope or accounting principles.
During the audit of the Company’s June 30, 2018 financial statements, Moss Adams communicated the following, which noted deficiencies in internal control over financial reporting, which were considered to be material weaknesses:
Insufficient Information Technology and Accounting Infrastructure. Management did not maintain a sufficient complement of information technology personnel with appropriate systems knowledge, experience, and training, which resulted in inadequate segregation of duties, access to computer systems, documentation of policies and procedures, and system maintenance. Management noted that the Company’s computer systems are often running on older versions of accounting software with limited functionality that hindered our ability to automate controls. Additionally, at certain of our manufacturing facilities there are a relatively small number of professionals employed by our Company in bookkeeping and accounting functions, which has resulted in instances of inadequate segregation of duties within our internal control systems and delays in performing certain reviews. The insufficient information technology and accounting infrastructure resulted in deficiencies in the design and operating effectiveness over financial reporting that are considered a material weakness because they could lead to the untimely identification and resolution of accounting and disclosure matters or could lead to a failure to perform timely and effective reviews at a level of precision necessary to identify a material error.
Despite the material weaknesses, which had not been remediated as of June 30, 2018, the Company believes that the consolidated financial statements included in the Annual Report on Form 10-K for the year ended June 30, 2018 present, in all material respects, our financial position, results of operations, changes in stockholders’ equity, and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles.
During the fiscal years ended June 30, 2018, and through March 13, 2019, there have been no:
Disagreements, as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions, with Moss Adams on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Moss Adams, would have caused them to make reference to the subject matter of the disagreement(s) in connection with its reports on the financial statements for such years; or
Other than the material weakness communication above, there were no other “reportable events,” as that term is described in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided Moss Adams with a copy of this Form 8-K/A, and has requested that Moss Adams furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements and, if not, stating the respects in which it does not agree.A copy of such letter, dated March 19, 2019, indicating that Moss Adams is in agreement with such disclosures is filed as Exhibit 16.1 to this Form 8-K/A.
New independent registered public accounting firm
On March 13, 2019, the Audit Committee of the Board of Directors of the Company approved the appointment of ACM LLP (“ACM”) as the Company’s independent registered public accounting firm to perform independent services for the fiscal year ending June 30, 2019, effective immediately, subject to completion of ACM’s standard client acceptance procedures and the execution of an engagement letter. In deciding to elect ACM, the Audit Committee reviewed auditor independence issues and existing commercial relationships with ACM and concluded that ACM has no commercial relationship with the Company that would impair its independence for the fiscal year ended June 30, 2019.During the Company’s two most recent fiscal years and the subsequent interim periods through March 12, 2019, the Company did not consult ACM with respect to any matters listed in Regulation S-K Item 304(a)(2) regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and neither a written nor oral advice was provided to the Company that ACM concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a “disagreement” or a “reportable event”.
Item 4.01. Exhibits
ARC Group Worldwide, Inc. Exhibit
EX-16.1 2 ex-16d1.htm EX-16.1 arcw_Ex16_1 Exhibit 16.1 March 19,…
To view the full exhibit click
About ARC Group Worldwide,Inc. (NASDAQ:ARCW)
ARC Group Worldwide, Inc. is a manufacturing company. The Company has four segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling. The Flange and Fittings Group consists of General Flange and Forge. The Wireless Group focuses on wireless broadband technology related to propagation and optimization. The Wireless Group designs and develops hardware, including antennas, radios and related accessories.