Earlier in the month, adult playground company Dave & Buster’s filed an S-4 to register $200 million in senior notes. Everything seemed to be in order and the month of August just moseyed along as it does.
Until the 24th, when GOD KNOWS what happened and D&B’s audit committee up and fired E&Y. They then filed the amended S-4, letting the whole world know about it:
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
On August 25, 2010, Ernst & Young, LLP (the “Former Auditors”) was dismissed as the Company’s independent auditors. The Audit Committee of the Board of Directors of the Company approved their dismissal on August 24, 2010.
The Former Auditors’ audit report on the Company’s consolidated financial statements for each of the past two fiscal years did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.
During the Company’s most recent two fiscal years and through the subsequent interim period on or prior to August 25, 2010, (a) there were no disagreements between the Company and the Former Auditors 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 the Former Auditors, would have caused the Former Auditors to make reference to the subject matter of the disagreement in connection with its report; and (b) no reportable events as set forth in Item 304(a)(1)(v)(A) through (D) of Regulation S-K have occurred.
Naturally, this invites rampant speculation as to the why, why and the why? It’s not the most high profile client on Earth but as Adrienne pointed out, Ernst & Young is now on a list with Vice-President Joe Biden and no one needs that.
Dave & Buster’s, Inc. Announces Dismissal of Independent Auditor [Business Newswire via JDA]
This country sucks! THE GOVERNMENT NEEDS TO ALL GO ROT IN A PRISON HOLE! Horrible monsters!
Leave and go to a country that prohibits freedom. We don’t need that attitude in America.
Only corporations have freedom, the rest of us are too poor for choices.
I thought that there was a shortage of accountants/CPAs? Just a joke – moving it all to India! I feel sorry for those going into accounting for a career.
2030 prediction, < 100 US employees…
If someone hates America, they should leave. Go to a third world country for a few weeks and see if you still hate America.
It sucks for 130 people but it’s not even a drop in the bucket for the greatness of America. America is great again!
130 people is a drop in the bucket. The bigger issue is that this is a secular trend in that the headcount will slowly be chipped down to bare bones.
My question is…how do partners still make a yuge amount of money? When I think about skillsets and trends, and technology, how are they not being disrupted?
I know some principals at the Big Four and at second tier firms. For infosec work these “experts” are charged out at $350 an hour to produce powerpoints and reports, but 95% of these experts have never run a backup, never designed a network, never encountered a single security incident, and never run a scan.
How are they staying employed, but even more importantly, WHY ARE COMPANIES PAYING these massive fees for someone who is an accounting firm lifer, and has zero information security experience??
I can tell you that some companies are getting wiser and they are not paying for crap skills.
Not to mention the sheer volume of work being sent overseas. Their plan now is to train new hires to supervise work that they themselves haven’t performed with the firms claiming this is due to AI rather than admitting it’s because nearly entire teams are operating out of India.
How can they continue to justify Big 4 prices? Name recognition and “prestige” can only get them so far.
Clients and potential clients are waking up, B4 bottom lines have been struggling for a couple years now and it’ll only get worse if they keep up the way they have which they will because they don’t know any other way.