TOOTSIE ROLL INDUSTRIES, INC. (OTCMKTS:TROLB) Files An 8-K Changes in Registrant’s Certifying Accountant

TOOTSIE ROLL INDUSTRIES, INC. (OTCMKTS:TROLB) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01.Changes in Registrant’s Certifying Accountant.

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Subsequent to(i) the filing of Tootsie Roll Industries, Inc.’s (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2017, (ii) the filing of the Company’s definitive proxy statement and (iii) the Company’s 2018 Annual Meeting of Shareholders, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”), with the assistance of management, conducted a competitive process to determine the Company’s independent registered public accounting firm for the 2018 fiscal year.The Audit Committee invited several independent registered public accounting firms to participate in this process.

Following a competitive review and receipt of proposals from the independent registered public accounting firms that participated in the process, on June 7, 2018, the Audit Committee dismissed PricewaterhouseCoopers LLP (“PwC”) as the Company’s independent registered public accounting firm and approved the appointment of Grant Thornton LLP (“GT”), each effective as of June 7, 2018.GT will complete the review of the Company’s unaudited interim financial statements as of and for the quarter ending June 30, 2018.

(a) Dismissal of Independent Registered Public Accounting Firm

On June 7, 2018, the Company and the Audit Committee dismissed PwC as the Company’s independent registered public accounting firm.

The audit reports of PwC on the Company’s consolidated financial statements for the fiscal years ended December 31, 2016 and December 31, 2017 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.

During the Company’s fiscal years ended December 31, 2016 and December 31, 2017, and for the subsequent interim period through June 7, 2018, (i) there have been no “disagreements” (as defined in Item 304(a)(1)(iv) of Regulation S-K) 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 thereto in their reports on the consolidated financial statements for such years; and (ii) there have been no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K).

In accordance with Item 304(a)(3) of Regulation S-K, the Company provided PwC with a copy of this Current Report on Form 8-K and requested that PwC furnish the Company with a letter addressed to the U.S. Securities and Exchange Commission (“SEC”) stating whether it agrees with the statements made by the Company herein and, if not, stating the respects in which it does not agree.Attached as Exhibit 16.1 is a copy of PwC’s letter dated June 11, 2018.

(b) Appointment of New Independent Registered Public Accounting Firm

On June 7, 2018, the Audit Committee appointed GT to serve as the Company’s independent registered public accounting firm for the 2018 fiscal year and related interim periods.

During the Company’s two most recent fiscal years ended December 31, 2016 and December 31, 2017, and for the subsequent interim period through June 7, 2018, neither the Company nor anyone on its behalf consulted GT regarding (i) the application of accounting principles to a specified transaction, either completed or proposed; or on the type of audit opinion that might be rendered on the consolidated financial statements of the Company, and neither a written report nor oral advice was provided to the Company that GT 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 or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K.

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits


TOOTSIE ROLL INDUSTRIES INC Exhibit
EX-16.1 2 ex-16d1.htm EX-16.1 tr_EX16_1 Exhibit 16.1 June 11,…
To view the full exhibit click here

About TOOTSIE ROLL INDUSTRIES, INC. (OTCMKTS:TROLB)

Tootsie Roll Industries, Inc. and its subsidiaries, are engaged in the manufacture and sale of confectionery products. The Company’s products are marketed in a range of packages designed to be suitable for display and sale in different types of retail outlets. The Company operates through manufacture and sale of confectionery products segment. The confectionery products are distributed through approximately 30 candy and grocery brokers and by the Company itself to over 4,000 customers across the United States. The Company’s customers include wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandise, warehouse and membership club stores, vending machine operators, the United States military and fund-raising charitable organizations. The Company’s principal markets are in the United States, Canada and Mexico.

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