8-K: Maximus Inc. Appoints KPMG as New Independent Auditor, Replacing Ernst & Young

Maximus Inc. has changed its independent auditor from Ernst & Young to KPMG, effective November 25, 2024.

Summary

• Maximus Inc. has appointed KPMG LLP as its new independent registered public accounting firm for the fiscal year ending September 30, 2025.
• This change was approved by the Audit Committee of the Board of Directors on November 25, 2024, following a competitive selection process.
• Ernst & Young LLP (EY), the previous auditor, was dismissed effective November 25, 2024.
• EY's audit reports for the fiscal years ended September 30, 2024 and 2023, did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements between Maximus and EY regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended September 30, 2024 and 2023, and the subsequent period through November 26, 2024.
• Maximus did not consult with KPMG on any matters related to accounting principles or practices before the appointment.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors with no apparent issues, suggesting a neutral to slightly positive sentiment. The lack of disagreements with the previous auditor is a positive sign.

Positives

• The transition to a new auditor was the result of a competitive selection process, suggesting a thorough evaluation by Maximus.
• EY's audit reports for the past two fiscal years were clean, indicating no prior issues with the company's financials.
• There were no disagreements between Maximus and EY, suggesting a smooth transition.

Risks

• The change in auditors could potentially introduce some short-term uncertainty as KPMG becomes familiar with Maximus's financial systems and controls.
• Although no disagreements were reported, a change in auditors can sometimes signal underlying issues, though none are apparent in this case.

Industry Context

Changes in auditors are not uncommon, and companies often switch auditors after a period of time or due to a competitive process. This change does not appear to be related to any specific industry trend or competitor action.

Comparison to Industry Standards

• The change of auditors is a normal business practice and is not unusual in the context of publicly listed companies.
• Many companies, including those in the same sector as Maximus, periodically review their audit arrangements and may change auditors to ensure independence and fresh perspectives.
• The fact that there were no disagreements with the previous auditor is a positive sign, as it suggests the change was not due to any accounting or auditing issues.

Stakeholder Impact

• Shareholders may view the change of auditors as a routine matter, with no immediate impact on the company's financial health.
• Employees may experience a change in the audit process, but this is not expected to have a significant impact on their day-to-day activities.
• Customers and suppliers are unlikely to be affected by this change.

Key Dates

Keywords

auditor, KPMG, Ernst & Young, accounting, audit, financial statements, Maximus