September 15, 2019

Grant Thornton Picks Up a New Client in the Interest of Penny-Pinching

Perma-Fix Environmental Services, a "global provider of safe, compliant, and environmentally responsible nuclear services and radioactive waste management solutions," has swapped auditors, and gives quite the compelling reason for it in their 8-K filed with the SEC:

On June 25, 2014, the Audit Committee of Perma-Fix Environmental Services, Inc. (the “Company”) approved the dismissal of BDO USA, LLP (“BDO”) as the Company’s independent registered accounting firm. The Company notified BDO of its dismissal in a letter from the Company to BDO dated June 26, 2014, which stated that the primary reason for BDO’s dismissal was due to the Company’s desire to reduce its overall cost of the external audit function [emphasis ours].

BDO has served as Perma-Fix's auditor since 1996. For the fiscal year ended December 31, 2013, BDO expressed a going concern doubt due to "declining revenues, recurring losses from operations and a net working capital deficiency." You know, all the stuff that makes it hard to make money (which, then, makes it hard to pay the overpriced auditors who tell you you are broke).

Additionally, BDO identified a material weakness in internal control over financial reporting for FY ended December 31, 2012 and the company restated its annual consolidated financial statements for 2012, 2011, and 2010. The good news is the company reports besides all that and the whole going concern doubt thing, everything has been good for the last two fiscal years.

Good luck with that one, GT!

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