8-K: Ohio Valley Banc Corp. Appoints Plante & Moran as New Independent Auditor, Replacing Crowe LLP

Ohio Valley Banc Corp. has engaged Plante & Moran, PLLC as their new independent auditor for the year ending December 31, 2024, replacing Crowe LLP.

Summary

• Ohio Valley Banc Corp. has changed its independent registered public accounting firm.
• The Audit Committee conducted a competitive process to select a new auditor for the year ending December 31, 2024.
• Plante & Moran, PLLC was chosen as the new auditor, subject to standard client acceptance procedures and an engagement letter.
• Crowe LLP was dismissed as the company's auditor, effective after completing the audit for the year ending December 31, 2023.
• Crowe's reports for 2022 and 2021 did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements or reportable events between Ohio Valley Banc Corp. and Crowe during the fiscal years 2022 and 2021, and the interim period from January 1, 2023, to the date of the report.
• Ohio Valley Banc Corp. did not consult with Plante & Moran on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 7

Explanation: The document reflects a routine change in auditors, with no indication of underlying issues. The process appears to be well-managed and transparent, which is positive. However, any change in auditors introduces a small amount of uncertainty.

Positives

• The transition to a new auditor was conducted through a competitive process, suggesting a thorough evaluation.
• Crowe LLP's past audits were clean, indicating no prior issues with the company's financial reporting.
• There were no disagreements or reportable events between the company and Crowe, suggesting a smooth relationship.

Risks

• The change in auditors could introduce a period of adjustment and potential for increased scrutiny.
• There is a risk of unforeseen issues arising during the transition to the new auditor.

Future Outlook

The company will be working with Plante & Moran for the audit of the year ending December 31, 2024.

Management Comments

• The Audit Committee conducted a competitive process to determine the company's independent registered public accounting firm.
• The company notified Crowe that it has been dismissed as the company's independent registered public accounting firm.

Industry Context

Changes in auditors are not uncommon, and companies often conduct competitive processes to ensure they have the best fit for their needs. This change is within the normal course of business for a public company.

Comparison to Industry Standards

• The process of selecting a new auditor through a competitive process is standard practice for publicly traded companies.
• The lack of disagreements or reportable events with the previous auditor, Crowe LLP, is a positive sign and aligns with industry expectations for a smooth transition.
• Companies like First Financial Bancorp and WesBanco, which are similar in size and scope to Ohio Valley Banc Corp., also periodically review and change their auditors as part of good corporate governance.

Stakeholder Impact

• Shareholders may view the change in auditors as a routine matter, provided the transition is smooth.
• Employees may experience a change in the audit process, but this is not expected to have a significant impact.
• Customers and suppliers are unlikely to be directly affected by this change.

Next Steps

• Plante & Moran will complete their standard client acceptance procedures.
• An engagement letter will be executed between Ohio Valley Banc Corp. and Plante & Moran.
• Plante & Moran will conduct the audit for the year ending December 31, 2024.

Key Dates

Keywords

auditor, accounting firm, Plante & Moran, Crowe LLP, audit committee, independent auditor, financial statements