Business Context and Reporting Period
Company: MVB Financial Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: January 8, 2007
Principal Executive Offices: Fairmont, West Virginia
This filing reports a change in the company's independent certifying accountants. The Audit Committee and Board of Directors approved the dismissal of the current auditor, Brown, Edwards & Company, L.L.P. ("BE"), and the engagement of a new firm, S.R. Snodgrass, A.C. ("Snodgrass").
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the administrative change of the external audit firm.
Material Changes Versus Prior Period
- Accountant Dismissal: Brown, Edwards & Company, L.L.P. is being dismissed upon completion of the 2006 financial statement examination (expected late January 2007).
- Reason for Change: The dismissal is attributed solely to the proposed cost for the examination of the 2007 financial statements.
- New Engagement: S.R. Snodgrass, A.C. has been elected to audit financial statements for 2007, with expectations to continue for 2008 and 2009.
- Audit History: Financial statements for 2003, 2004, and 2005 contained no adverse opinions, disclaimers, or modifications regarding uncertainty, audit scope, or accounting principles.
Guidance, Outlook, and Risks
Management Commentary: Management states there were no disagreements with the former accountant (BE) regarding accounting principles, financial statement disclosure, or auditing scope and procedures. No advice from the former accountant was a factor in reaching decisions on accounting or reporting issues.
Contingencies: The company will request a letter from BE addressed to the SEC stating whether they agree with the statements made in this filing. BE is required to file this letter within ten business days of this report.
Risks: The filing does not disclose specific financial risks, though the change in auditors is a material corporate governance event.
Important Facts for Investor Verification
- Verify the letter from Brown, Edwards & Company, L.L.P. to be filed with the SEC within ten business days to confirm their agreement with the stated reasons for dismissal.
- Confirm the final audit opinion on the 2006 financial statements once the examination by BE is completed in late January 2007.
- Monitor the 2007 Form 10-KSB to ensure the new auditor, S.R. Snodgrass, A.C., is listed and that no undisclosed disagreements arise during the transition.