December 10, 2018

Auditor Musical Chairs: 99¢ Only Stores Splurges on Ernst & Young, Dumps BDO

With a business name like "99¢ Only Stores," no one would blame you if you assumed the company and would try to pinch some pennies on their auditor. It's a commodity service that is just asking to be squeezed, after all. However, sometimes as a public company, you'd like a big name brand on your auditor's opinion. A Tiffany diamond, if you will. That seems to be desires of team 99¢:

The Audit Committee (the “Audit Committee”) of the Board of Directors of Number Holdings, Inc., the parent company of 99¢ Only Stores (the “Company”), has completed a competitive process to review the appointment of the Company’s independent registered public accounting firm for the fiscal year ending March 30, 2013. The Audit Committee invited several firms to participate in this process.
 
As a result of this process and following careful deliberation, on November 5, 2012, the Audit Committee approved the dismissal of BDO USA LLP (“BDO”) and the engagement of Ernst & Young LLP (“E&Y”) as the Company’s independent registered public accounting firm, in each case effective November 7, 2012.
While this is probably just another notch on the bedpost for E&Y, according to our tipster who provided the link to the 8-K, this is a much more painful event for Bravo Delta Oscar. 
This was BDO Los Angeles' largest client.
It's probably safe to assume that E&Y just hustled a little harder. 
 
8-K [SEC]

Related articles

Grant Thornton and the Antichrist

al pacino_devil.jpgIt’s rather mysterious that the New York office of Grant Thornton is located at 666 Third Ave. As I’m sure our more pious readers know, the significance of the 666 is commonly known as “The Number of the Beast“. We won’t get into any more specifics than that other than to mention that it is a pretty creepy-ass looking number.
Is G to the T run by a secret group of Al Pacino-esque figures that are working against the forces of good?
Maybe not but the otherwise boring-assness of that particular lobby is def working too hard to not be noticed…