Big4 Auditor Changes week ending 12/9/12

This week’s big news is automaker Chrysler Group LLC dismissing Deloitte as their auditor and engaging Ernst & Young.  Deloitte’s run as Chrysler auditor was fairly short-lived; they’d taken over from KPMG just a few years before, in 2009.  Chrysler indicated the , “Audit Committee recommended this change because, since January 1, 2012, Reconta Ernst & Young S.p.A. has served as the auditor for Fiat S.p.A. and its consolidated subsidiaries, which include Chrysler Group.”  It makes sense that a group as large as Fiat would have one global auditor, and not surprisingly, Chrysler chose to appoint parent company Fiat’s auditors.

It wasn’t all bad news for Deloitte this week. Despite losing Chrysler, they did manage to pick up Austin based EZCORP. EZ is a, “leader in specialty consumer finance.” Roughly translated, they operate pawn shops. It’s no small time operation, though; they generated revenue of nearly $1 billion in fiscal 2012.

By comparison, the last change seems small.  Small-time solar player Solar Power Inc. dropped KPMG and went with a smaller audit firm, Crowe Horwath.  Appearing to have a bit of a complex, Crowe’s website goes to great lengths to tell how big they are.

Filing Date Company State Old Auditor New Auditor Dismissal / Resignation
12/4/2012 EZCORP, Inc. TX BDO USA LLP Deloitte & Touche LLP Dismissal
12/5/2012 Solar Power Inc. CA KPMG LLP Crowe Horwath LLP Dismissal
12/7/2012 Chrysler Group LLC MI Deloitte & Touche LLP Ernst & Young LLP Dismissal

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And the auditor carousel spins on…


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