Key issues in EY's resignation:
- Governance and control concerns emerged in July 2024, leading to Special Committee review with external firms
- EY lost confidence in management/Audit Committee representations during their first audit engagement
- Despite disagreement from company and ongoing review, EY made final decision to resign on October 24, 2024
EY resigned as company's auditor on 10/24/2024 during their first audit engagement that started 3/15/2023. In July 2024, EY raised concerns about governance, transparency, communications, and internal controls, prompting a Special Committee review. EY determined they could no longer rely on management/Audit Committee representations or be associated with financial statements. Company disagrees with EY's resignation since the Special Committee review remains incomplete. Company doesn't expect restatements of quarterly reports for FY2024 or prior years. The stock dropped 30% after the market open to $34.
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