- Indetiv (NASDAQ:INVE) has disclosed the resignation of BDO as the company's public accounting firm. Burr Pilger Mayer has been hired to replace BDO, which is now unwilling to be associated with Identiv's 2015 financial statements.
- While BDO's reports for Identiv's recent financial statements don't contain an adverse opinion or disclaimer of opinion, BDO has advised the board it's "unwilling to be associated with the consolidated financial statements prepared by management for any of the fiscal periods within 2015 and will not complete its reviews of the interim financial information as of or for the periods ended March 31, 2015, June 30, 2015 or September 30, 2015, and additionally will not audit the Company's consolidated financial statements as of and for the year ending December 31, 2015," due to an accounting review disagreement.
- Specifically, BDO "disagrees with the scope and the remediation" of a special committee investigation (disclosed in May) into accounting issues, and has found two material weaknesses in Identiv's internal control over financial reporting. One relates to entity level controls - BDO asserts "the Company's senior management leadership and operating style and the Board's oversight did not result in an open flow of information and communication and did not support an environment where accountability is valued - and the other involves revenue recognition.
- Shares are now down 81% YTD.