8-K: Accel Entertainment Switches Auditors to Deloitte

Accel Entertainment, Inc. announced a change in its independent registered public accounting firm from KPMG LLP to Deloitte and Touche, LLP following a competitive selection process.

Summary

• Accel Entertainment, Inc. (ACEL) has engaged Deloitte and Touche, LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2026.
• This decision followed a competitive selection process conducted by the company's Audit Committee.
• KPMG LLP, the previous auditor, was dismissed, effective upon completion of its audit of the company's consolidated financial statements for the fiscal year ending December 31, 2025.
• There were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures during the fiscal years ended December 31, 2024 and 2023, or subsequent interim periods.
• No reportable events were identified during the aforementioned periods.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive due to the proactive competitive selection process and the explicit statement of no disagreements or reportable events with the outgoing auditor, indicating a healthy transition rather than one driven by underlying issues. This reflects good corporate governance.

Positives

• The change in auditor followed a competitive selection process, suggesting a focus on best practices and potentially cost efficiency or enhanced service.
• There were no disagreements with the former auditor, KPMG LLP, on any accounting principles, practices, financial statement disclosure, or auditing scope or procedures.
• No reportable events were identified during the fiscal years ended December 31, 2024 and 2023, or subsequent interim periods, indicating a clean audit history with KPMG.

Risks

• The engagement of Deloitte and Touche, LLP is subject to the completion of its standard client acceptance procedures.

Future Outlook

The company anticipates a smooth transition to Deloitte and Touche, LLP for the fiscal year ending December 31, 2026, following the completion of KPMG's audit for the fiscal year ending December 31, 2025.

Management Comments

• The Audit Committee of the Board of Directors of Accel Entertainment, Inc. recently completed a competitive selection process... to determine the Company's independent registered public accounting firm for the fiscal year ending December 31, 2026.
• Following the review and evaluation of the proposals of the participating firms, on December 18, 2025, the Committee approved the engagement of Deloitte and Touche, LLP... subject to completion of its standard client acceptance procedures.
• Concurrently, the Committee also approved the dismissal of KPMG... following completion of its audit of the Company's consolidated financial statements for the fiscal year ending December 31, 2025.

Industry Context

Changes in independent registered public accounting firms are a common occurrence in the corporate landscape, often driven by competitive bidding processes, evolving audit needs, or a desire for fresh perspectives. The absence of disagreements or reportable events during the transition period aligns with best practices for corporate governance and auditor changes.

Corporate Governance

Stakeholder Impact

• Shareholders: The transparent and orderly change of auditors, without any reported disagreements, should maintain or enhance investor confidence in the company's financial reporting integrity.
• Creditors: The continuity of a reputable auditing firm and the absence of audit issues should reassure creditors regarding the reliability of financial statements.

Next Steps

• KPMG LLP will complete its audit of Accel Entertainment's consolidated financial statements for the fiscal year ending December 31, 2025.
• Deloitte and Touche, LLP will complete its standard client acceptance procedures.
• Deloitte and Touche, LLP will serve as the independent registered public accounting firm for the fiscal year ending December 31, 2026.

Key Dates

Keywords

Accel Entertainment, ACEL, Auditor Change, SEC Filing, 8-K, KPMG, Deloitte, Public Accounting Firm, Audit Committee, Corporate Governance