Shares of Super Micro Computer Inc SMCI took a hit, dropping 4.38%, following the resignation of its independent auditor, Ernst & Young.
What Happened: SMCI closed 32.68% lower at $33.07 on Wednesday and at the time of writing, SMCI was trading at $31.56 during pre-market hours on Thursday, according to Benzinga Pro.
The company announced in a regulatory filing that EY had stepped down as its registered public accounting firm. The auditing firm, which had been engaged since March 2023 to review Super Micro’s financials for the fiscal year ending June, resigned before completing any reports on the company’s financials or internal controls.
Back in July, EY raised concerns about governance, transparency, and the completeness of communications, warning that the timely filing of Super Micro’s annual report was at risk. In response, Super Micro’s board established a special committee to investigate these issues, which submitted preliminary information to both the company and its auditor.
The resignation letter from Ernst & Young highlighted a lack of confidence in the integrity and ethical values of the company, questioning the board’s independence and the reliability of information from certain management members. Although Super Micro disagrees with the resignation, it plans to address the concerns raised and continue the investigation.
Read Next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
