Why did Globalstar change its auditor?

Globalstar changed its auditor as a result of a comprehensive, competitive request for proposal process conducted by its Audit Committee to select a new independent registered public accounting firm. This process led to the dismissal of Crowe LLP and the engagement of Ernst & Young LLP.

Were there any disagreements or issues with the former auditor, Crowe LLP?

No, the filing explicitly states that there were no disagreements with Crowe LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedures. There were also no 'reportable events' as defined by Regulation S-K.

Did Globalstar consult with the new auditor, Ernst & Young LLP, before engaging them?

The filing indicates that Globalstar did not consult with Ernst & Young LLP regarding the application of accounting principles to specific transactions or the type of audit opinion that might be rendered. Furthermore, EY did not provide any written report or oral advice that was considered a significant factor in the company's decisions regarding accounting, auditing, or financial reporting matters.

What does this auditor change mean for investors?

This auditor change appears to be a procedural transition following a competitive review. The absence of disagreements or reportable events with the previous auditor suggests that this is not indicative of any discovered accounting irregularities or financial reporting issues. Investors can view this as a routine change in auditor selection.

GSAT 8-K: Financial Events

Summary

Globalstar, Inc. (GSAT) has filed an 8-K report on March 6, 2020, to announce a change in its independent registered public accounting firm. The company has dismissed Crowe LLP as its auditor and has engaged Ernst & Young LLP (EY) as its new auditor for the fiscal year ending December 31, 2020. This change followed a competitive request for proposal process conducted by the Audit Committee. Importantly, the report states that there were no disagreements or reportable events with the former auditor, Crowe LLP, during the past two fiscal years or the subsequent interim period. Similarly, there were no consultations with the new auditor, EY, on significant accounting or auditing matters that would indicate prior issues. This transition appears to be a routine procedural change and does not signal any underlying financial or accounting concerns with the company's historical financial reporting.

Key Highlights

1Globalstar, Inc. has changed its independent registered public accounting firm.
2Crowe LLP has been dismissed as the company's auditor.
3Ernst & Young LLP (EY) has been appointed as the new auditor for the fiscal year ending December 31, 2020.
4The decision to change auditors was made after a competitive request for proposal process by the Audit Committee.
5There were no disagreements or reportable events with the former auditor, Crowe LLP.
6No prior consultations with the new auditor, EY, on significant accounting or auditing issues were reported.

Globalstar, Inc. 8-K Report, Auditor Change (Mar 6, 2020)

Summary

Key Highlights

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