If a company dismissed their accounting firm, could that cause the stock to go down? Why or why not? Any information would be great!
Posted by Bob Frey on :
Sure it can and does many times.
Most of the time it is because the Accountants want to say something the company does not agree with in a filing.
Posted by 66inxs on :
a lot of that would depend on the circumstances of the dismissal imho. cpa firms following the same gaap rules and regulations and aicpa standards should generally come up with the same figures, unless something funny is going on, and that something funny could radically affect the pps of a stock, especially a pink sheet.
Posted by Shredderman on :
Thanks! I read that TZMT released their accounting firm :
ITEM 4.01 CHANGES IN REGISTRANT?S CERTIFYING ACCOUNTANT
Previous Independent Registered Public Accounting Firm
On July 6, 2006, Telzuit Medical Technologies, Inc. (the ?Company?) informed Pender Newkirk & Company, CPAs (?Pender Newkirk?) of its dismissal as the Company?s independent registered public accounting firm. The decision to change the Company?s auditors was recommended by the Audit Committee and approved by the Board of Directors.
The reports of Pender Newkirk on the Company?s consolidated financial statements for the fiscal years ended December 31, 2003 and 2004, and the transition period from January 1, 2005 through June 30, 2005 (the ?Audit Period?) did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. Pender Newkirk has not reported on the financial statements of the Company for the fiscal year ended June 30, 2006.
During the Audit Period, and through July 6, 2006, there were no disagreements with Pender Newkirk on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Pender Newkirk, would have caused it to make reference thereto in its report on the Company?s consolidated financial statements for such year.
I wasn't sure what adverse effect this might have if any.
Posted by 66inxs on :
maybe they were fired because they would NOT play ball with something management wanted to do in the future or theey found out something that management did not want them to know or disclose.
Posted by T e x on :
or...
they weren't getting paid enough to *go along* ???
just a thought...
Posted by Shredderman on :
Do you think it is really something that "sinister" LOL Is there any positive reasons why they might have done this?
Posted by T e x on :
simply wanted cheaper...cut overhead
Posted by Shredderman on :
That's what I was thinking but, wanted input. I've also noticed alot of insider buying of shares,wondering if this could be a good sign?
Posted by Shredderman on :
Well.... not buying but, alot of "Accumulation" LOL