Big4 Auditor Changes week ending 04/21/13

Each of the Big4 audit firms picked up a new client this week, though E&Y seems to have taken it on the chin, losing three clients in the process.

PwC is likely glad to have been dismissed by Magnum Hunter Resources, who only engaged PwC last July. This week, Magnum let PwC go before the 2012 audit was completed. I think it has something to do with the seven pages of  accounting issues and material weaknesses that PwC identified. They’re all there; income taxes, assets held for sale, capitalized interest, etc.  There’s even a paragraph labeled Miscellaneous that catches issues with everything else including revenue and expense accruals, stock-based compensation, and asset retirement obligations.  Sounds like BDO is walking into a disaster, though I’m sure they’ll be handsomely compensated for their efforts.

California based Armanino managed to wrestle Scientific Learning Corp from E&Y. Wrestle might be too strong a word.  Scientific’s had some struggles, including declining revenues, recurring losses, a steadily declining (sub $1) stock price, and a going concern opinion on their 2012 numbers.  Not the type of client profile that Big4 firms are keen on.  Maybe a smaller firm like Armanino will be able to give Scientific the extra attention they need while they try to turn things around.

Here’s the full list:

Filing Date Company Location Old Auditor New Auditor Dismissal / Resignation
4/15/2013 Tile Shop Holdings, Inc. MN Deloitte & Touche LLP Ernst & Young LLP Dismissal
4/16/2013 Scientific Learning Corporation CA Ernst & Young LLP Armanino LLP Dismissal
4/16/2013 Magnum Hunter Resources Corporation TX Pricewaterhouse Coopers LLP BDO USA, LLP Dismissal
4/18/2013 NCI, Inc. VA Ernst & Young LLP Deloitte & Touche LLP Resignation
4/18/2013 GSI Group Inc. MA Ernst & Young LLP Pricewaterhouse Coopers LLP Dismissal
4/18/2013 Multi-Color Corporation OH Grant Thornton LLP KPMG LLP Dismissal

That’s all for this week on the Big4 Auditor Carousel. Check back often for all the latest auditor changes involving Big4 audit firms. You can have updates automatically emailed to you by clicking on the “Follow” button to the right.

Round and round and round…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: