Please ensure Javascript is enabled for purposes of website accessibility

BDO Should Be Thanking Its Lucky Stars That Swisher Hygiene Fired Them

BDO, an audit firm, had a difference of opinion with Swisher Hygiene, Inc., a client, about the company's internal controls over financial reporting. Specifically, BDO identified 12 material weaknesses and 5 significant deficiencies. Contrast that with Swisher's analysis that found no material weaknesses and 1 significant deficiency. Also! BDO's audit opinion for for 2014 contained a going concern warning. Alternatively, the Company's analysis found no going concern issues. 

Like I said, a difference of opinion. A difference of opinion that got BDO fired and Grant Thornton hired.

Interestingly, the Charlotte Observer reported last month that the Swisher admitted that things weren't looking so good based on what the company said in its 10-K. Also worth noting — the Observer reported in February 2014 that Swisher settled a lawsuit for $5.5 million with shareholders who claimed the company was inflating its stock price through "deliberately misstating its financial results." That lawsuit arose out of a restatement that the company made on its 2011 results. The restatement came about after Florida gazillionaire Wayne Huizenga and his business partner Steve Berrard acquired Swisher in 2004, started gobbling up companies to boost the revenues and screwed up the accounting in the process. Before that, the company's founder, Patrick Swisher was sentenced to jail in 2002 for tax evasion. And before that, the company settled SEC charges of accounting fraud in 2001.

Two questions: 1) Why did BDO keep Swisher as a client all this time? and 2) Why the hell is Grant Thornton picking them up as a client?

If you have answers or wild-ass theories for either, please share.

Swisher fires accounting firm BDO USA [CO]
Form 8-K [SEC]
Form 10-K [SEC]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Layoff Watch ’23: BDO USA Cuts 85 People in Advisory, Wishes Them the Very Best on the Way Out the Door

Fresh off the rumor mill: BDO USA has cut 85 people from advisory, announced via internal email from brand new advisory head Eskander Yavar to all of his service line this afternoon. We were provided part of the email which reads: Today was a difficult day for our practice — we reduced our workforce by […]

Carmine Di Sibio at WSJ summit

BDO Will Audit EY Consulting, or Whatever That Business is Gonna Be Called

The Wall Street Journal has written a pretty detailed account of comments EY Global Chairman and CEO Carmine Di Sibio made to WSJ’s CFO Network Summit earlier this week, scroll down to skip past a bunch of words and watch the clip. Of note, the split vote is now expected to happen in April. “I […]