8-K: Grayscale Horizen Trust (ZEN) Changes Auditors from Marcum LLP to KPMG LLP

Grayscale Horizen Trust (ZEN) has dismissed Marcum LLP as its independent auditor and appointed KPMG LLP, effective after the completion of the fiscal year 2024 audit.

Summary

• Grayscale Horizen Trust (ZEN) has changed its independent registered public accounting firm.
• The Audit Committee approved the dismissal of Marcum LLP on March 1, 2024, effective after the completion of the audit for the fiscal year ending September 30, 2024.
• KPMG LLP has been appointed as the new independent auditor, starting with the fiscal year ending September 30, 2025.
• There were no disagreements with Marcum on accounting principles, financial statement disclosure, or auditing scope during the audits for the years ending September 30, 2023 and 2022, and the subsequent interim period.
• Marcum's reports for 2023 and 2022 did not contain any adverse opinions or disclaimers, except for an emphasis of matter paragraph regarding investments in digital assets.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors with no apparent issues, suggesting a neutral to slightly positive sentiment. The transition to a larger firm like KPMG could be seen as a positive step for compliance and transparency.

Positives

• The transition to a new auditor, KPMG, appears to be smooth with no reported disagreements with the previous auditor, Marcum.
• Marcum's audits for the past two years did not raise any significant concerns, indicating a clean financial history.

Risks

• The change in auditors could potentially introduce a period of adjustment and increased scrutiny during the transition.
• While no disagreements were reported, any future issues with the new auditor could lead to uncertainty.

Future Outlook

The Trust will be audited by KPMG starting with the fiscal year ending September 30, 2025.

Management Comments

• The Sponsor has furnished to Marcum the statements made in this Item 4.01.
• The Audit Committee of the Board of Directors of the Sponsor approved the engagement of KPMG LLP.

Industry Context

Changes in auditors are not uncommon, but the transition to a large firm like KPMG could signal a move towards greater scrutiny and compliance, which is a trend in the digital asset space.

Comparison to Industry Standards

• The change of auditors is a common practice, and the selection of KPMG, a Big Four accounting firm, aligns with industry standards for larger and more complex financial entities.
• Many similar trusts and investment vehicles use large, reputable firms for their audits, such as Deloitte, Ernst & Young, and PwC.

Stakeholder Impact

• Shareholders may view the change to a larger auditor as a positive step towards greater financial transparency and compliance.
• The transition should not have a significant impact on employees or customers.

Next Steps

• KPMG will begin its audit services for the fiscal year ending September 30, 2025.
• Marcum will complete the audit for the fiscal year ending September 30, 2024.

Key Dates

Keywords

auditor, accounting, KPMG, Marcum, Grayscale Horizen Trust, ZEN, financial statements, audit