8-K: Brownies Marine Group Appoints New Independent Auditor, Bush & Associates CPA, LLC

Brownies Marine Group, Inc. has replaced its independent auditor, appointing Bush & Associates CPA, LLC, effective October 4, 2024.

Summary

• Brownies Marine Group, Inc. has changed its independent registered public accounting firm from Assurance Dimensions, LLC to Bush & Associates CPA, LLC, effective October 4, 2024.
• The decision to change auditors was approved by the company's board of directors.
• Assurance Dimensions' reports for the fiscal years ended December 31, 2023 and 2022, did not contain any adverse opinions or disclaimers, but included an explanatory paragraph regarding the company's ability to continue as a going concern.
• There were no disagreements or reportable events between Brownies Marine Group and Assurance Dimensions regarding accounting principles, financial statement disclosure, or auditing scope.
• Brownies Marine Group did not consult with Bush & Associates prior to their appointment regarding accounting principles or the type of audit opinion that might be rendered.

Sentiment

Score: 5

Explanation: The change in auditors is neutral, but the going concern note from the previous auditor is a concern. The lack of prior consultation with the new auditor is also a slight negative.

Positives

• The change in auditors was approved by the board of directors, indicating proper corporate governance.
• The previous auditor's reports did not contain any adverse opinions or disclaimers, suggesting no major issues with past financial statements.

Negatives

• The previous auditor's reports included an explanatory paragraph about the company's ability to continue as a going concern, which could be a concern for investors.

Risks

• The going concern note in the previous auditor's report indicates potential financial instability.
• The lack of prior consultation with the new auditor could lead to unexpected issues during the audit process.

Management Comments

• Robert Carmichael, Chief Executive Officer, signed the report on behalf of Brownies Marine Group, Inc.

Industry Context

Changes in auditors are not uncommon, but it is important to note the reason for the change and any potential implications for the company's financial reporting. The going concern note from the previous auditor is a key point to consider.

Comparison to Industry Standards

• The change of auditors is a standard practice, and the process followed by Brownies Marine Group appears to be in line with regulatory requirements.
• The lack of prior consultation with the new auditor is not unusual, but it is important to monitor the audit process for any potential issues.
• The going concern note is a significant issue that needs to be addressed by the company and the new auditor.

Stakeholder Impact

• Shareholders should be aware of the change in auditors and the going concern note.
• Creditors may be concerned about the company's financial stability.

Next Steps

• Bush & Associates CPA, LLC will begin auditing the company's financial statements.
• The company will need to address the going concern issue raised by the previous auditor.

Key Dates

Keywords

auditor, accounting firm, independent auditor, financial statements, audit, Brownies Marine Group, Bush & Associates, Assurance Dimensions