8-K: Hennessy Advisors Changes Auditors Following Marcum LLP Acquisition

Hennessy Advisors, Inc. has changed its independent auditor from Marcum LLP to CBIZ CPAs P.C. following Marcum's acquisition by CBIZ.

Summary

• Hennessy Advisors, Inc. was notified on December 10, 2024, that Marcum LLP would not stand for reelection as their independent auditor.
• This decision followed CBIZ CPAs P.C.'s acquisition of Marcum's attest business on November 1, 2024.
• Marcum officially resigned on December 11, 2024, and CBIZ CPAs P.C. was engaged as the new auditor for the fiscal year ending September 30, 2025.
• Marcum's reports on Hennessy's financial statements for the fiscal years ended September 30, 2024 and 2023, were clean, with no adverse opinions or qualifications.
• There were no disagreements between Hennessy and Marcum on accounting principles, financial disclosures, or auditing procedures.
• Hennessy did not consult with CBIZ prior to their engagement regarding accounting principles or audit opinions.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors due to an acquisition, with no reported issues or disagreements. This suggests a stable situation with no immediate cause for concern.

Positives

• The transition to a new auditor was smooth, with no reported disagreements or issues with the previous auditor, Marcum LLP.
• Marcum's audit reports for the past two fiscal years were clean, indicating no concerns with the company's financial statements.
• The company has quickly engaged a new auditor, CBIZ CPAs P.C., ensuring continuity in financial oversight.

Risks

• The change in auditors could potentially lead to a period of adjustment and increased scrutiny as the new auditor becomes familiar with the company's financials.
• Although no issues were reported, any change in auditors can introduce a degree of uncertainty.

Industry Context

Changes in auditors are not uncommon, especially following mergers and acquisitions within the accounting industry. This change reflects the consolidation trend in the accounting sector.

Comparison to Industry Standards

• The transition of auditors due to acquisitions is a common occurrence in the industry, with firms like Deloitte, Ernst & Young, KPMG, and PwC often involved in similar transitions.
• The lack of disagreements between Hennessy and Marcum is a positive sign, as it indicates a healthy relationship and adherence to accounting standards, which is consistent with industry best practices.
• The engagement of CBIZ CPAs P.C. is a standard practice, as companies seek reputable firms to ensure the integrity of their financial reporting.

Stakeholder Impact

• Shareholders should be reassured by the smooth transition and lack of reported issues with the previous auditor.
• Employees may experience a slight change in procedures related to financial reporting, but no significant impact is expected.
• Customers and suppliers are unlikely to be directly affected by this change.

Key Dates

Keywords

auditor, accounting, Marcum LLP, CBIZ CPAs P.C., financial statements, audit, Hennessy Advisors