8-K: AG Mortgage Investment Trust Appoints Deloitte as New Independent Auditor, Replacing PwC

AG Mortgage Investment Trust has changed its independent auditor from PricewaterhouseCoopers to Deloitte & Touche, effective immediately on March 15, 2024.

Summary

• AG Mortgage Investment Trust, Inc. has dismissed PricewaterhouseCoopers LLP (PwC) as their independent registered public accounting firm.
• Deloitte & Touche LLP (Deloitte) has been appointed as the new independent registered public accounting firm, effective March 15, 2024.
• This change is for the fiscal year ending December 31, 2024.
• The decision was made by the Audit Committee of the Board of Directors.
• The change follows TPG Inc.'s acquisition of Angelo, Gordon & Co., L.P., which made the company's manager an indirect subsidiary of TPG.
• Deloitte is the independent registered public accounting firm for TPG.
• PwC's reports for the fiscal years ended December 31, 2023 and 2022 did not contain any adverse opinions, disclaimers, qualifications, or modifications.
• There were no disagreements or reportable events with PwC during the two most recent fiscal years and the subsequent interim period through March 15, 2024.
• The company did not consult with Deloitte on any accounting or auditing matters prior to their appointment.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors following a merger, with no negative implications or concerns raised. The transition appears smooth and expected.

Positives

• The transition to Deloitte appears to be smooth, with no reported disagreements or issues with the previous auditor, PwC.
• PwC confirmed their agreement with the statements made by AG Mortgage Investment Trust regarding their dismissal.
• The company has secured a new auditor in Deloitte, which is also the auditor for the parent company TPG.

Risks

• The change in auditors could potentially introduce some short-term uncertainty as the new auditor becomes familiar with the company's financials.
• Although no issues were reported, any change in auditor can sometimes lead to a re-evaluation of accounting practices.

Industry Context

The change in auditors is not uncommon after a significant acquisition, such as TPG's acquisition of Angelo Gordon, and is often done to align the auditing firm with the parent company.

Comparison to Industry Standards

• Switching auditors is a common practice, especially after a merger or acquisition, to align with the parent company's auditor, as seen with TPG and Deloitte.
• The lack of disagreements or reportable events with PwC is a positive sign, indicating a smooth transition, which is in line with industry best practices for auditor changes.
• Many companies in the financial sector, such as Blackstone and Apollo, also use large firms like Deloitte or PwC for their auditing needs.

Stakeholder Impact

• Shareholders should not be significantly impacted by this change in auditors, as there were no reported issues with the previous auditor.
• Employees may experience a change in processes related to financial reporting and auditing.

Key Dates

Keywords

auditor, Deloitte, PwC, accounting, financial statements, audit committee, TPG, AG Mortgage Investment Trust