Business Context and Reporting Period
This Form 8-K Current Report, dated February 28, 2025, and signed on March 6, 2025, pertains to CECO Environmental Corp. The filing addresses a change in the registrant's certifying accountant.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Dismissal of Auditor: On February 28, 2025, the Audit Committee dismissed BDO USA, P.C. as the independent registered public accounting firm, effective immediately.
- Engagement of New Auditor: Deloitte & Touche LLP was selected to serve as the new independent registered public accounting firm for the fiscal year ending December 31, 2025. The engagement was formally approved on March 5, 2025.
- Audit Opinions: BDO's reports for fiscal years 2023 and 2024 contained no adverse opinions, disclaimers, or qualifications.
Management Commentary, Risks, and Contingencies
- Disagreements: There were no disagreements between the Company and BDO regarding accounting principles, financial statement disclosure, or auditing scope during the relevant periods.
- Reportable Events: The only reportable event was the identification of material weaknesses in internal control over financial reporting as of December 31, 2023. These weaknesses concerned management's review of revenue recognition and balance sheet reconciliations.
- Remediation Status: The Company states that these material weaknesses were remediated as of the date of dismissal (February 28, 2025), with specific controls implemented by March 31, 2024, and June 30, 2024.
- Consultations: No consultations were held with Deloitte regarding accounting principles or reportable events prior to their engagement.
Investor Verification Checklist
- Verify the effective date of the auditor transition (February 28, 2025) and the formal engagement date (March 5, 2025).
- Confirm the status of the previously disclosed material weaknesses in internal controls and review the specific remediation actions taken.
- Review the letter from BDO USA, P.C. (Exhibit 16.1) to ensure they concur with the Company's statements regarding the dismissal and reportable events.
- Monitor future filings for the first audit opinion issued by Deloitte for the fiscal year ending December 31, 2025.