Test English 2024-10-30 19:43

Super Micro Computer stock (SMCI) cratered Wednesday morning, falling over 30% after a filing revealed accounting firm Ernst & Young (EY) has resigned from its relationship with the tech company.

In the resignation letter, EY said: “We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management’s and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations.”

EY quit while conducting the audit for Super Micro’s fiscal year that ended on June 30, 2024. In Wednesday’s 8-K SEC filing, Super Micro said in a statement it “disagrees” with EY’s decision and is “working diligently to select new auditors.”