Toshiba Corp. has given up finding a new auditor to check its earnings for fiscal 2016 in place of its current auditor, PricewaterhouseCoopers Aarata LLC, according to informed sources. The effort failed ahead of the Tokyo Stock Exchange-set deadline next Monday for companies listed on the exchange to release their scorecards for the year. The struggling Japanese electronics and machinery maker will ask PwC Aarata, a major auditor, to continue working for the company and check its fiscal 2016 earnings, while seeking a different auditor for fiscal 2017 through March 2018, the sources said. Toshiba and PwC Aarata are at odds over accounting for Toshiba's loss-laden U.S. nuclear business unit, Westinghouse Electric Co. Due to the disagreement, Toshiba was unable to obtain PwC Aarata's approval for its business results for April-December 2016. As a result, the company released last month an unapproved earnings report for the first nine months of fiscal 2016.
MoviePass seems like a deal that's too good to be true: $9.95 per month allows you to see one 2D movie per week (or up to four per month) in movie theaters. But many have wondered how MoviePass will make money; after all, the company is paying theaters full price for movie tickets. Now, Business Insider reports that an external auditor has "substantial doubt about the Company's ability to continue as a going concern" based on MoviePass's 10-K filing. The auditor in question is Rosenberg Rich Baker Berman & Co., and the firm specifically had concerns about negative cash flows that MoviePass reported. Because of the levels of these losses, the auditors question the viability of the company over the next year.
When state Auditor Elaine Howle told a joint legislative committee this month that University of California central administrators had amassed a $175-million undisclosed surplus, paid fat salaries and interfered in her audit, lawmakers cried foul. One compared UC administrators to corrupt officials in Bell. Another called for UC President Janet Napolitano to resign. Some wanted to know whether UC officials had committed any crimes and should be subpoenaed. But UC regents struck a markedly different tone when Howle came to talk to them about the audit Thursday.