8-K: Key Tronic Corporation Appoints Baker Tilly as New Auditor Following Moss Adams Merger

Key Tronic Corporation has appointed Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams LLP due to a merger, with no reported disagreements or reportable events.

Summary

• Key Tronic Corporation (the "Company") was notified on June 3, 2025, that Moss Adams LLP ("Moss Adams"), its independent registered public accounting firm, merged with Baker Tilly US, LLP.
• The combined audit practices now operate as Baker Tilly US, LLP (Baker Tilly), leading to Moss Adams' resignation as the Company's auditors.
• The Audit Committee of Key Tronic's Board of Directors approved the appointment of Baker Tilly as the successor independent registered public accounting firm.
• Moss Adams' audit reports for the fiscal years ended June 29, 2024, July 1, 2023, and July 2, 2022, did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified, except for an explanatory paragraph regarding the restatement of consolidated financial statements for the years ended July 1, 2023, and July 2, 2022.
• During the specified periods and through June 3, 2025, there were no disagreements with Moss Adams on accounting principles, financial statement disclosure, or auditing scope/procedure, nor any reportable events.
• Key Tronic Corporation did not consult with Baker Tilly regarding accounting principles or audit opinions prior to their appointment.
• Moss Adams confirmed its agreement with the statements made by Key Tronic Corporation in the Form 8-K filing in a letter to the SEC dated June 3, 2025.

Sentiment

Score: 5

Explanation: The document reports a routine administrative change in the company's independent auditor due to a merger, with no reported disagreements or adverse findings, indicating a neutral impact.

Positives

• The transition of the independent registered public accounting firm from Moss Adams LLP to Baker Tilly US, LLP occurred smoothly due to a merger, not due to disagreements or issues with Key Tronic Corporation.
• Moss Adams confirmed that there were no disagreements on accounting principles or auditing scope, nor any reportable events, indicating a clean transition.

Negatives

• The audit report for the years ended July 1, 2023, and July 2, 2022, included an explanatory paragraph regarding the restatement of consolidated financial statements, which, while not an adverse opinion, indicates prior financial reporting adjustments.

Risks

• Potential for minor disruption during the transition period as a new audit firm familiarizes itself with the Company's operations and financial systems, although the document implies a smooth transition.
• The restatement of consolidated financial statements for prior years (July 1, 2023, and July 2, 2022) could indicate historical issues with financial reporting accuracy, even if resolved and not a point of disagreement with the former auditor.

Future Outlook

No specific forward-looking statements or guidance are provided in this administrative filing.

Management Comments

• "Key Tronic Corporation was notified that Moss Adams LLP, the Company's independent registered public accounting firm, merged with Baker Tilly US, LLP effective on June 3, 2025."
• "The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly, as the successor to Moss Adams, as the Company's independent registered public accounting firm."
• "The audit report of Moss Adams on the Company's consolidated financial statements... did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles, other than an explanatory paragraph regarding the restatement of the consolidated financial statements for the years ended July 1, 2023, and July 2, 2022."
• "During the years ended June 29, 2024, July 1, 2023, and July 2, 2022, and the subsequent interim period through June 3, 2025, there were no (a) disagreements with Moss Adams... or (b) reportable events..."

Industry Context

Mergers among large accounting firms are a common occurrence in the professional services industry, often leading to changes in client audit engagements. This specific change reflects a consolidation trend within the auditing sector, and Key Tronic's transition to Baker Tilly is a direct consequence of such an industry event.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal direct impact, as the change is administrative and not indicative of financial distress or operational issues. Ensures continued compliance with audit requirements.

Key Dates

Recommendation

Keywords

Key Tronic Corporation, KTCC, SEC filing, 8-K, auditor change, independent registered public accounting firm, Moss Adams LLP, Baker Tilly US LLP, corporate governance, financial reporting, audit committee, restatement