Business
DXP Enterprises Builds Transition Plan to New Accounting Firm in 2022
HOUSTON--(BUSINESS WIRE)-- DXP Enterprises, Inc. (NASDAQ: DXPE) on Friday, November 12, 2021, filed an 8-K with the SEC regarding its plans to transition to
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":" HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) on Friday, November 12, 2021, filed an 8-K with the SEC regarding its plans to transition to a new audit firm for the remainder of fiscal 2021 and for fiscal 2022. The Company determined that in order to timely complete its audit for 2021, rather than wait for its existing auditor to complete its review of the Q3 Form 10-Q before resigning, it would need to immediately replace its existing auditor so that the review of the Company’s Q3 Form 10-Q and its full year audit and review of its internal controls could be run in parallel. Management believes this will give it the best chance of completing its fiscal 2021 full year audit on time and facilitate a successful transition to a new accounting firm in fiscal 2022.\n\nGiven the unexpected nature surrounding the circumstances, how late it is in the year and the current squeeze on accounting firm resources in the marketplace, the Company made the decision to appoint McConnell & Jones LLP (“McConnell Jones”) given the firm’s willingness to devote substantial resources to the audit and the breadth, experience and ability to conduct an integrated audit. The Company made the decision to select McConnell Jones as its interim auditor until the Company could more fully review and facilitate an orderly transition during the first half of fiscal 2022. The Company appreciates the willingness of McConnell Jones to step in so late in the year. In choosing McConnell Jones, not only did they have the staffing resources, but they were more than qualified. The deep experience of the firm’s personnel, with roots in big four accounting firms and over thirty years in the business, makes them more than capable to review the Q3 Form 10-Q and complete the full year audit. As customary in an auditor transition, the Company will select an independent registered public accounting firm for fiscal 2022 appropriate for the size, scale and complexity of the Company.\n\nKent Yee, CFO remarked, “This plan and recent choices have been about the future of DXP and to align with our vision and plan for the finance and accounting function. When you are in a growth environment, change is constant, and you look for partners, solutions and situations that complement your growth. DXP is no different. While we would have preferred a more orderly or conventi...