Super Micro Computer's shares plunge after accounting firm resigns
Shares of Super Micro Computer plunged more than 30% by midday Wednesday, after the server maker disclosed that Ernst & Young had resigned as its public accounting firm
NEW YORK — Shares of Super Micro Computer plunged more than 30% by midday Wednesday, after the server maker disclosed that Ernst & Young had resigned as its public accounting firm.
According to a regulatory filing from Super Micro, EY resigned while conducting an audit for the tech company's most recent fiscal year. The accounting firm communicated concerns in July over issues like transparency and internal control related to financial reporting, Wednesday's filing notes, later prompting Super Micro's board to enlist a review.
Additional information received during this review then led EY to raise questions about whether Super Micro “demonstrates a commitment to integrity and ethical values," the company added, as well as transparency and oversight independent of the CEO and other management.
The Associated Press reached out to EY for statement Wednesday. Super Micro's regulatory filing notes EY's resignation letter stated, in part, that it would “no longer be able to rely” on representations from the company's management and audit committee — and concluded it could no longer provide audit services «in accordance with applicable law or professional obligations.”
EY sent its resignation letter last week, per Wednesday's filing, which noted that the company's review is ongoing. The audit would’ve been the EY's first on Super Micro’s behalf.
In a statement, Super Micro said that it disagreed with EY's decision to resign — and was now “working diligently” to select new auditors. The company added that it does not expect “a resolution of the matters raised by
Read more on abcnews.go.com
