Wish to dispel what may become an expectation related to BDO and its work for GIFS.
An accounting firm engaged by a client would NEVER put out a press release about the engagement, unless there was misinformation (client releases info that is not completely accurate), the CPA firm was asked to clarify or expound on info by the client, etc. The most common PR from CPA firms are (1) when a client fires a firm and has made derogatory statements about the firm (protect the firm's image), or (2) the client is in deep trouble and the previously engaged CPA firm wants to maintain an arm's length image (CYA).
A client hires the CPA firm, and therefore, it gets the information. This is a private business transaction, not a public one. It is up to the client to release what information they wish about the work done by the CPA firm. It is neither common nor rare for a CPA firm to do a press release with a client, but typically, we're talking Fortune 500 type clients who represent very little risk to very conservative accountants. (There might even be some ethics rules for CPAs here. It's been a few years since I studied them.)
Bottom Line: The CPA firm does not have a fiduciary responsibility to shareholders or the market, except in very specific (usually negative) situations. Obviously, that is not the case here as preliminary info from GIFS indicates. I expect (speculation here) GIFS to release the info, possibly even a large part of the overall report, and let BDO's reputation (which is quite good) speak for itself to shareholders and the financial markets.
And the adventure continues... |
