CITIZENS, INC. (NYSE:CIA) Files An 8-K Changes in Registrant’s Certifying Accountant
Item4.01Changes in Registrants Certifying Accountant
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Table of Contents
Item4.01 |
Changes in Registrants Certifying Accountant |
On June30, 2017, Citizens, Inc. (the Company) was notified by its
independent registered public accounting firm,Ernst Young, LP
(EY) of its decision to resign as the Companys independent
registered public accounting firm. .EY advised that they will
continue to serve as the Companys auditor for the duration of its
review of the Companys interim financial statements to be
included in the Companys Quarterly Report on Form 10-Q for the
quarter ended June30, 2017. During the fiscal years ended
December31, 2015 and 2016 and through June30, 2017, there were no
disagreements (as defined in Item304(a)(1)(iv) of Regulation S-K
and the related instructions to Item304 of Regulation S-K) with
EY 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 EY, would
have caused EY to make reference to the subject matter of such
disagreements in connection with its reports on the financial
statements for such years.
EYs reports on the Companys financial statements for the fiscal
years ended December31, 2015 and 2016 did not contain any adverse
opinion or disclaimer of opinion and were not qualified or
modified as to uncertainty, audit scope or accounting principles.
During the Companys fiscal years ended December31, 2015 and 2016
and through June30, 2017, there have been no reportable events
(as defined in Item304(a)(1)(v) of Regulation S-K), except that
management identified a material weakness in the Companys
internal control over financial reporting related to ineffective
management review control as it pertained to the Companys tax
review of external tax experts complex documentation for the
fiscal year ended December31, 2015. Management also identified
material weaknesses in the Companys internal control over
financial reporting related to ineffective data validation and
management review controls, ineffective supervision of
third-party service organization and ineffective staff competency
for the fiscal year ended December31, 2016. However, there was no
disagreement between the Company and EY with respect to these
determinations. The Audit Committee has authorized EY to respond
fully to any inquiries of the Companys successor independent
registered public accounting firm concerning these material
weaknesses, and EY has agreed to provide such information to the
successor independent registered public accounting firm.
The Company has provided EY with a copy of the disclosures
required by Item304(a) of Regulation S-K contained in this
Current Report on Form 8-K and has requested that EY furnish the
Company with a letter addressed to the Securities and Exchange
Commission stating whether EY agrees with the statements made by
the Company in this Current Report on Form 8-K and, if not,
stating the respects in which it does not agree. A copy of EYs
letter, dated June [30], 2017, is filed as Exhibit 16.1 to this
Current Report on Form 8-K.
In May 2017, following the late filing of its 10K, the Company
and its Audit Committee initiated discussions with other
independent registered public accounting firms for the purpose of
finding a replacement and anticipates completing its auditor
selection process before the end of the third quarter 2017.
Item9.01 |
Financial Statements and Exhibits |
(d) |
Exhibits |
| 16.1 |
Letter to the Securities and Exchange Commission from Ernst Young LLP dated as of June30, 2017. |
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CITIZENS INC ExhibitEX-16.1 2 d421052dex161.htm EX-16.1 EX-16.1 Exhibit 16.1 June 30,…To view the full exhibit click here About CITIZENS, INC. (NYSE:CIA)
Citizens, Inc. is an insurance holding company. The Company operates in three business segments: Life Insurance, Home Service and Other Non-Insurance Enterprises. The Life Insurance segment issues ordinary whole life insurance in the United States and in the United States Dollar-denominated amounts to foreign residents. It operates this segment through its subsidiaries, including CICA Life Insurance Company of America (CICA) and Citizens National Life Insurance Company (CNLIC). The Home Service segment sells limited-liability, named peril property policies covering dwelling and contents. Its home service insurance products consist of small face amount ordinary whole life and pre-need policies, which are designed to fund final expenses for the insured, primarily consisting of funeral and burial costs. The Other Non-insurance Enterprises segment includes Computing Technology, Inc. and Insurance Investors, Inc. This segment also includes the results of Citizens, Inc., the parent company.