Tag: Auditor Changes

8/29/20 – Auditor Changes

by enthusiastUncategorized

Few auditor changes in the two weeks of August. In terms of revenue, SJW Group which bought in $2 million revenues for KPMG past year switched to Deloitte. Meanwhile KPMG gained 2 clients which together paid $1.2 million last year to their auditors. PwC lost Casa Systems Inc. audit to EY. The expected revenues from this engagement will be $1.6 million.

CompanyOld AuditorNew AuditorTotal Fee Previous Auditor (‘000) $
Healthcare Solutions Management Group Inc.BMKR LLPBorgers
Soltrest Inc.MG LLC
Casa Systems IncPwCEY1,586
Aptevo Therapeutics Inc.EYMoss Adams LLP543
ROID Group Inc.Prager MetisMG LLC
American Outdoor Brands IncDeloitteGT
Resonant Inc.Crowe LLPKPMG557
Innodata Inc.CohnReznickBDO
Versus International Inc.Assurance DimensionsRBSM
mPhase Technologies IncAssurance DimensionsRBSM
SJW GroupKPMGDeloitte2,031
Boston Omaha Corp.MaloneBaileyKPMG641
Auditor changes

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8/15/20 – Auditor changes

by enthusiastUncategorized

Another quiet week for auditor changes. One big change is that Deloitte lost the audit of Century Casinos to Grant Thornton. This audit bought in a total fee of $1.6 million in 2019 for Deloitte. Probably the COVID-19 uncertainty prompted Century Casinos to look for lower options.

CompanyOld AuditorNew AuditorNature of changeTotal Fee Previous Auditor (‘000) $
New Momentum CorporationCenturion ZDTotal Asia AssociatesDismissal
Delmar BancorpTGM GroupYHBDismissal
Century Casinos Inc.DeloitteGTDismissal1,570
Luduson G Inc.KR PCTotal Asia AssociatesResignation
Auditor changes
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8/7/2020 Auditor changes

by enthusiastUncategorized

Relatively a quiet week in regard to auditor changes. BDO gained a client due to merger with another CPA firm. Here are the details:

CompanyOld AuditorNew AuditorNature of change
Lux Amber Corp–Whitley PennAppointment
Altair International CorpGillespieJorgensen & CoResignation
Odyssey Group InternationalPBTKBDOMerger of firms
ABCO Energy Inc.–SlackAppointment
Alpha Investment Inc.Assurance DimensionsTurner StoneResignation
Postads Inc.SalbergM&KDismissal
Auditor changes August 2020
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7/31/20 Auditor changes

by enthusiastUncategorized

Pretty uneventful week. Only two auditor changes for this week. EY lost an audit client which bought in $574K in fees last year to DHG.

CompanyOld AuditorNew AuditorNature of changeTotal Fee Previous Auditor (‘000) $
Galaxy Gaming IncPBTKBDOMerger of firms
Kewaunee Scientific CorporationEYDixon Hughes GoodmanDismissal574
7/31 week changes

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7/3/20 – Auditor changes

by enthusiastUncategorized

From this week on, there is a change in how auditor changes are tracked. We’ll look into all changes and not just the big4 firms. Makes sense to make the blog all inclusive. You might notice some small companies here so please bear with me folks!

CompanyOld AuditorNew AuditorNature of changeTotal Fee Previous Auditor (‘000) $
electroCore Inc.KPMGMarcum LLPDismissed630
Paysign Inc.Squar MilnerBDODismissed81
Poweverde Inc.Cherry Bekaert LLP–Resigned53
Apollo Endosurgery Inc.KPMGMoss Adams LLPDismissed758
Arma Services Inc.Haynie & Co.Zia Masood Kiani & Co.Dismissed4
HYB Holding CorpDe Leon & Co.Prager MetisResigned–
Auditor changes 7/3/20

Bad week for KPMG. Lost two audit engagements which bought in $1.3 million in revenues last year. For electroCore Inc., KPMG provided IPO services in 2018 which bought in an additional $767K in revenues. Interestingly, both companies switched from Big4 to a mid-tier firm.

Most interesting change for this week is in HYB Holding Corp merely because of the wording of the 8-K. Let me quote from the 8-K

On February 12, 2020, the Board of Directors of HYB Holding Corp. was notified that De Leon & Company, P.A., which had been the principal independent accountant for HYB Holding Corp. for the year ended June 30, 2019, had terminated its operations. There is no audit committee of the Board of Directors of HYB Holding Corp.

For enthusiasts would like to read further, here is a link to the SEC filing.

HYB Holdings 8-K

Any other changes this week? Do leave a note in the comments section!

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Auditor Changes in June 2020

by enthusiastUncategorized

Its June 30! End of another month under lockdown. Here are some stats on auditor changes for this month. Folks as an FYI, just looked into big4 auditor changes. So either the appointed or dismissed auditor had to be a big4 firm. Big month for Deloitte with no loss and gain of 7 audit engagements.

Auditor changes in June 2020 (#)

Here are the changes from a dollar perspective. Deloitte won engagements worth $86 million [Thanks to GE!]. The dollar gain was computed by using the fees paid to the dismissed auditor. The new auditor is probably not going to be paid that much but still a good datapoint! KPMG lost engagement worth $83 million [Again, Thanks to GE!] and won engagements worth $2 million.

Auditor changes in June 2020 ($)

So the score for the month of June is as follows;

FirmWinsLossNet
Deloitte707
PwC422
EY612-6
KPMG24-2
Big4 client changes in June 2020
Firm (in $’000)WinsLossNet
Deloitte86,192–86,192
PwC2,203(6,860)(4,657)
EY8,506(10,823)(2,317)
KPMG1,928(82,534)(80,606)
Big4 client changes in June 2020

I know some of my enthusiasts would like to see the data behind these numbers. Sure folks! that’s what this blog is all about. Openness and analytics! If you want the excel file for this calculation, drop a note in the comment section. Plus, if I missed any changes let me know!

CompanyPrevious AuditorNew AuditorTotal Fee Previous Auditor (‘000) $
Tetra Technologies Inc.EYGT1,238
CSI Compressco LPEYGT–
Marinus PharmaceuticalsKPMGEY650
Bristow Group Inc.GTKPMG1,024
Transworld Entertainment CorpKPMGFruci & Co.926
Open Lending CorpWithumEY–
Office Properties Income TrustEYDeloitte1,044
Diversified Healthcare TrustEYDeloitte1,512
Service Properties TrustEYDeloitte2,261
RMR Group Inc.EYDeloitte749
Industrial Logistics Properties TrustEYDeloitte1,080
Tremont Mortgage TrustEYDeloitte446
Menlo Therapeutics Inc.KesselmanPwC335
Urogen Pharma Ltd.KesselmanPwC571
Priority Technology Holdings Inc.RSMEY777
Nikola CorpRSMEY–
Riviera Resources Inc.KPMGBDO1,858
Circor International Inc.PwCEY6,611
Plymouth Industrial REITMarcumPwC867
Barings BDC Inc.EYKPMG904
Uranium Energy Corp.EYPwC430
Histogen Inc.EYMayer Hoffman502
Houston Wire & Cable Co.EYBKD LLP657
BRT Apartments CorpBDOEY468
Comstock Holding Companies Inc.BDOGT363
GE Inc.KPMGDeloitte79,100
Nexpoint Capital Inc.PwCRSM249
Big4 changes in June 2020

You’ll notice that EY lost a bunch of REIT clients. It’s all part of the RMR group Inc. Would be interesting to know why they switched. Also, Credit Suisse in Switzerland switched from KPMG to PwC as part of auditor rotation and filed with SEC the change this month. It was 64 million CHF in audit fees or $67 million USD. Would guess there are some Credit Suisse funds in the US which would have a new auditor this year! Did not include that change in this table since we don’t know the impact to the US firm. There will be a blog post soon on International auditor changes. Europe would be fun to watch here.

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