Ernst & Young resigns as the Company’s auditor, citing governance and internal control concerns, while an independent review continues.
On October 24th, 2024, Ernst & Young LLP (EY), an audit firm, sent a letter of resignation to the members of the Audit Committee representing the company $SMCI.
The company has begun the process of finding a new audit firm and does not believe there will be any restatements of its quarterly reports for the fiscal year 2024.
EY expressed concerns to the audit committee about various matters, including the company's communication, transparency, and governance regarding its internal financial reporting. The stock has dropped over 30% since the news broke this morning. Investors will be watching closely to see what unfolds in the coming days as the company makes announcements regarding a new audit firm to replace EY.
