Cohen & Co Inc. 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed by Cohen & Co Inc. (formerly Alesco Financial Inc.) on December 15, 2009. The report addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on auditor changes and related disclosures.
Material Changes
- Dismissal of Auditor: On December 15, 2009, the Audit Committee dismissed Ernst & Young LLP as the independent registered public accounting firm.
- Engagement of New Auditor: On the same date, the company engaged Grant Thornton LLP to serve as the independent registered public accountants for the fiscal year ended December 31, 2009. Grant Thornton has previously served as the auditor for Cohen Brothers since 2001.
- Internal Control Weakness: Ernst & Young identified a material weakness in internal controls over financial reporting as of December 31, 2008. This weakness related to valuation processes that were not designed or operating effectively.
Guidance, Risks, and Contingencies
The filing states there were no disagreements between the company and Ernst & Young regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2007 and 2008, or the subsequent period through December 15, 2009. Ernst & Young's reports for 2007 and 2008 did not contain adverse opinions, disclaimers, or qualifications. The company has requested a letter from Ernst & Young confirming agreement with these statements, which is filed as Exhibit 16.1.
Investor Verification Checklist
- Verify the content of the letter from Ernst & Young LLP (Exhibit 16.1) to confirm their agreement with the company's disclosures regarding the dismissal.
- Review the company's subsequent filings to determine if the material weakness in valuation processes identified for 2008 has been remediated.
- Confirm the transition timeline and scope of work for the new auditor, Grant Thornton LLP, for the 2009 fiscal year.