RAVEN INDUSTRIES, INC. (NASDAQ:RAVN) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01. Changes in Registrants Certifying Accountant.
Report on Form 10-K for the year ended January 31, 2017 (the 2017
10-K) for Raven Industries, Inc. (the “Company”), the Audit
Committee (the Audit Committee) of the Board of Directors of the
Company formally approved the appointment of Deloitte Touche LLP
(Deloitte) as the Companys independent registered public
accounting firm for the fiscal year ending January 31, 2018. On
March 31, 2017, the Company dismissed PricewaterhouseCoopers LLP
(PwC) as the Companys independent registered public accounting
firm.
statements for the fiscal years ended January 31, 2017 and 2016
did not contain an adverse opinion or a disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit
scope, or accounting principles.
31, 2017 and 2016, and during the subsequent interim period
through March 31, 2017, there were: (i) no disagreements with PwC
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 PwC, would
have caused PwC to make reference to the subject matter of the
disagreements in their reports on the consolidated financial
statements for such years, and (ii) no reportable events of the
type listed in Item 304(a)(1)(v) of Regulation S-K, except as
follows.
Report on Form 10-K/A for the fiscal year ended January 31, 2016
filed with the Securities and Exchange Commission (SEC), the
Company did not design and maintain effective internal controls
over financial reporting. Specifically,
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The Companys controls relating to the response to the risks
of material misstatement were not effectively designed. |
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The Companys controls over the accounting for goodwill and
long-lived assets, including finite-lived intangible assets, were not effectively designed and maintained, specifically, the controls related to the identification of the proper unit of account as well as the development and review of assumptions used in interim and annual impairment tests. |
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The Companys controls related to the accounting for income
taxes were not effectively designed and maintained, specifically the controls to assess that the income tax provision and related tax assets and liabilities are complete and accurate. |
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The Companys controls over the existence of inventories
were not effectively designed and maintained. Specifically, the controls to monitor that inventory subject to the cycle count program was counted at the frequency levels and accuracy rates required under the Companys policy, and the controls to verify the existence of inventory held at third-party locations were not effectively designed and maintained. |
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The Companys controls over the completeness and accuracy of
spreadsheets and system-generated reports used in internal control over financial reporting were not effectively designed and maintained. |
has authorized PwC to respond fully to the inquiries of the
successor accountant concerning the reportable event.
Form 8-K prior to its filing with the Securities and Exchange
Commission (SEC) and requested that PwC furnish the Company with
a letter addressed to the SEC stating whether or not PwC agrees
with the above statements. A copy of the letter from PwC dated
April 6, 2017 is filed with this Current Report on Form 8-K as
Exhibit 16.1.
Firm
as the Companys independent registered public accounting firm,
the Audit Committee approved the appointment of Deloitte as the
Companys new independent registered public accounting firm.
31, 2017 and 2016, and during the subsequent interim period
through March 31, 2017, neither the Company, nor anyone on its
behalf, consulted Deloitte with respect to: (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 Companys consolidated financial statements, and
neither a written report was provided to the Company nor oral
advice was provided to the Company that Deloitte 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 (as
defined in Item 304(a)(1)(iv) of Regulation S-K and the related
instructions) or a reportable event (as described in Item
304(a)(1)(v) of Regulation S-K).
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Exhibit
No.
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Description
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16.1
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Letter of PricewaterhouseCoopers LLP to the Securities
and Exchange Commission, dated April 6, 2017, regarding statements included in this Current Report on Form 8-K. |
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About RAVEN INDUSTRIES, INC. (NASDAQ:RAVN)
Raven Industries, Inc. is a diversified technology company providing a range of products to customers within the industrial, agricultural, energy, construction and defense markets. The Company operates through three segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films) and Aerostar Division (Aerostar). The Applied Technology segment designs, manufactures, sells and services precision agriculture products and information management tools for growers. The Engineered Films segment produces plastic films and sheeting for energy, agricultural, construction, geomembrane and industrial applications. The Aerostar segment designs and manufactures products, including balloons, tethered aerostats and radar processing systems. It conducts business through its subsidiaries, including Aerostar International, Inc. (Aerostar), Vista Research, Inc. (Vista), Raven International Holding Company BV (Raven Holdings) and Raven Industries Canada, Inc. RAVEN INDUSTRIES, INC. (NASDAQ:RAVN) Recent Trading Information
RAVEN INDUSTRIES, INC. (NASDAQ:RAVN) closed its last trading session up +0.60 at 28.95 with 197,643 shares trading hands.