Auditor Changes week ending 07/07/13

Even with the 4th of July holiday, it was a busy week on the Auditor Carousel.  Interesting is the number of firms resigning, and the reasons given for the resignations.  Tongji Healthcare cited the, “increased audit and business risks with performing PCAOB audits in China,” as the reason why EFP Rotenberg resigned.  EFP also resigned as auditor of China Gengsheng Minerals, presumably for the same reason, though no reason was given in the filing.  Next, we had Wilson Morgan resign from the Victory Energy audit due to a, “desire to no longer provide audit services as part of their strategic business plan.”  Lastly, there was ParenteBeard resigning as auditor of Customers Bancorp, noting the audit team resigned from Parente and joined BDO, or as Republic First Bancorp put it, Parente resigned, “to control the direction of its practice.” They all use different words, but the underlying reason is there; auditing public companies carries risk, and we’re a point where some firms simply don’t want that risk regardless of the reward.

And in the Things Finally Got Straightened Out category, we have High Plains Gas.  High Plains filed back in October noting StarkSchenkein was engaged, then filed again in June noting they’d engaged D’Arelli Pruzansky, with no mention of what happened to Stark.  They got all caught up this week, with a filing that noted Stark previously resigned. Mystery solved.

Here’s the full list:

Filing Date Company Location Old Auditor New Auditor Dismissal / Resignation
7/1/2013 Acroboo, Inc. FL De Joya Griffith, LLC Paula S. Morelli, CPA, P.C. Dismissal
7/1/2013 Prevention Insurance.com NY Santora CPA Group GBH CPAs, PC Dismissal
7/1/2013 China Gengsheng Minerals, Inc. China EFP Rotenberg, LLP Resignation
7/1/2013 Andain, Inc. CA Crowe Horwath LLP Yarel + Partners Dismissal
7/1/2013 Clean Enviro Tech Corp. NV Madsen & Associates CPAs, Inc. Sadler Gibb & Associates, LLC Resignation
7/1/2013 India Globalization Capital, Inc. MD ASA and Associates AJSH & Company Dismissal
7/2/2013 Pulse Electronics Corporation CA KPMG LLP Grant Thornton LLP Dismissal
7/2/2013 Inergy, L.P. MO Deloitte & Touche LLP Ernst & Young LLP Dismissal
7/2/2013 Titan Machinery Inc. ND Eide Bailly LLP Deloitte & Touche LLP Dismissal
7/2/2013 Terrace Ventures Inc. WA Sama & Company Saturna Group Chartered Accountants LLP Resignation
7/2/2013 1st Constitution Bancorp NJ ParenteBeard LLC BDO USA LLP Dismissal
7/2/2013 M Line Holdings Inc. CA Kabani & Company, Inc. MaloneBailey, LLP Dismissal
7/2/2013 DNB Financial Corporation PA ParenteBeard LLC BDO USA LLP Dismissal
7/2/2013 Greer Bancshares Incorporated SC Dixon Hughes Goodman LLP Elliott Davis PLLC Dismissal
7/2/2013 KCG Holdings, Inc. NJ PricewaterhouseCoopers LLP
7/2/2013 Development Capital Group, Inc. Canada Thomas A. Ralston, CPA L.L. Bradford & Company Dismissal
7/2/2013 Accelerate Diagnostics, Inc. AZ Comiskey and Company Ernst & Young LLP Dismissal
7/2/2013 Hollywood Entertainment EDU Holding, Inc. CA EFP Rotenberg, LLP Patrick Rodgers CPA, PA Resignation
7/3/2013 Tongji Healthcare Group, Inc. China EFP Rotenberg, LLP Resignation
7/3/2013 Rockford Minerals Inc. Canada Liggett, Vogt & Webb, P.A. DeVisser Gray LLP Dismissal
7/3/2013 Victory Energy Corporation TX Wilson Morgan LLP Marcum LLP Resignation
7/3/2013 TOA Holdings, Inc. Japan Drake, Klein, Messineo, CPAs PA Messineo & Co, CPAs, LLC Dismissal
7/3/2013 Superfund Gold, L.P. Grenada, West Indies Deloitte & Touche LLP McGladrey LLP Dismissal
7/3/2013 Superfund Green, L.P. Grenada, West Indies Deloitte & Touche LLP McGladrey LLP Dismissal
7/3/2013 Selway Capital Acquisition Corporation NJ McGladrey LLP BDO USA LLP Dismissal
7/3/2013 Inca Global, Inc. CA Peter Messineo, CPA De Leon & Company, P.A. Resignation
7/3/2013 Republic First Bancorp, Inc. PA ParenteBeard LLC BDO USA LLP Resignation
7/3/2013 Genmark Diagnostics, Inc. CA Deloitte & Touche LLP Ernst & Young LLP Dismissal
7/3/2013 Customers Bancorp, Inc. PA ParenteBeard LLC BDO USA LLP Dismissal
7/5/2013 Vanport Acquisition I, Corporation CA Wilson Morgan LLP Dale Matheson Carr-Hilton Labonte LLP Resignation
7/5/2013 Vanport Acquisition II, Corporation CA Wilson Morgan LLP Dale Matheson Carr-Hilton Labonte LLP Resignation
7/5/2013 Vanport Acquisition III, Corporation CA Wilson Morgan LLP Dale Matheson Carr-Hilton Labonte LLP Resignation
7/5/2013 Vanport Acquisition IV, Corporation CA Wilson Morgan LLP Dale Matheson Carr-Hilton Labonte LLP Resignation
7/5/2013 Vanport Acquisition V, Corporation CA Wilson Morgan LLP Dale Matheson Carr-Hilton Labonte LLP Resignation
7/5/2013 Vystar Corporation GA Habif, Arogeti & Wynne, LLP Porter Keadle Moore, LLC Dismissal
7/5/2013 Press Ventures, Inc. Canada LBB &  Associates  Ltd. Goldman Accounting Services CPA, PLLC Resignation
7/5/2013 Kearny Financial Corp. NJ ParenteBeard LLC BDO USA LLP Dismissal
7/5/2013 High Plains Gas, Inc. WY StarkSchenkein, LLP Resignation
7/5/2013 Greenlight Ventures Inc. WA Sama & Company Saturna Group Chartered Accountants LLP Resignation

Before checking out, I want say thanks to Tom Renna, who gave us a mention on his #Equities Research blog.  Do yourself a favor and check it out.

You can follow the Auditor Carousel on Twitter, or simply by clicking the “Follow” button above and to the left.

Round and round and round…

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4 Responses to Auditor Changes week ending 07/07/13

  1. T.R. says:

    SEC received TITAN 8-K July 2,2013 @ 16:56:12 est.
    The unusual volume on the morning of June 28,2013 looks like somebody saw this 8-K coming.

  2. The Titan Machinery story 2 years later is being noticed by another research firm. Here is a Link to an article this week at TheStreetSweeper.

    http://www.thestreetsweeper.org/undersurveillance/Titan_Machinery__Titanic_Downside_Risk#.VktBQqYlvmI.blogger

    In the article is a link to a post of mine that coincidentally has a link here to this piece you did. Thanks for all the great insightful information that you share.

    http://newsgrade.blogspot.com/2015/02/titan-machinery-unusual-volume-with-no.html

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