Item 4.01. Change in Registrant's Certifying Accountant.
South African mandatory audit firm rotation rules
The Audit Committee of the Board of Directors of Lesaka Technologies, Inc. ("Lesaka" or the "Company") embarked on a competitive bidding process to identify, evaluate and appoint a new independent accountant as its certifying accountant in South Africa to audit its consolidated annual financial statements for the year ended June 30, 2024. The Company's current independent registered public accounting firm, Deloitte & Touche ("Deloitte") in South Africa, is registered with the Public Company Accounting Oversight Board in the US, and is also registered with the Independent Regulatory Board for Auditors ("IRBA"), the South African auditor regulator. As prescribed by the IRBA, public interest entities with auditors registered with the IRBA are required to comply with mandatory audit firm rotation requirements which limits the period for which a registered auditor can serve as a company's auditor to no more than 10 years. Lesaka is therefore required to comply with these mandatory audit firm rotation rules which necessitates a change to Lesaka's certifying accountants for the year ended June 30, 2024.
On May 9, 2023, Lesaka's Audit Committee appointed, and the Company engaged, KPMG Inc. ("KPMG") in South Africa, an independent accountant, as its certifying accountant beginning July 1, 2023, the first day of Lesaka's 2024 fiscal year. At the same time, Lesaka's Audit Committee approved the dismissal of Deloitte, Lesaka's existing principal accountant, effective upon the completion of Deloitte's audit of Lesaka's consolidated financial statements for the fiscal year ended June 30, 2023.
Deloitte's reports on the Company's consolidated financial statements, which were included in the Company's Annual Reports on Form 10-K for the fiscal years ended June 30, 2022 and 2021, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. Deloitte's reports on the Company's effectiveness of internal control over financial reporting, which were included in the Company's Annual Reports on Form 10-K for the fiscal years ended June 30, 2022 and 2021, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.
During the fiscal years ended June 30, 2022 and 2021, and the subsequent interim period through May 9, 2023, there were: (i) no disagreements within the meaning of Item 304(a)(1)(iv) of Regulation S-K and the related instructions between the Company and Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Deloitte's satisfaction, would have caused Deloitte to make reference thereto in its reports; and (ii) no "reportable events" within the meaning of Item 304(a)(1)(v) of Regulation S-K. The change in Lesaka's certifying accountant is solely as a result of compliance with South Africa's mandatory audit firm rotation requirements.
The Company provided Deloitte with a copy of the foregoing disclosures and requested that Deloitte furnish a letter addressed to the SEC stating whether or not it agrees with the foregoing disclosures. A copy of Deloitte's letter, dated May 9, 2023, is filed as Exhibit 16.1 hereto.
During Lesaka's fiscal years ended June 30, 2022 and 2021, and the subsequent interim period through May 9, 2023, neither the Company nor anyone on its behalf consulted KPMG regarding any of the matters set forth in Item 304(a)(2) of Regulation S-K.