EY Quits As Super Micro Computer Auditor

Super Micro Computer (SMCI), the maker of liquid-cooled artificial-intelligence (AI) servers, stated in a regulatory filing that its accounting firm, Ernst & Young (EY), had resigned due to concerns about Super Micro's financial statements, Rob Lenihan reported for TheStreet.

EY expressed concerns about Super Micro’s board independence from Charles Liang, the company's co-founder, chairman, president, and CEO, as well as other members of management. I Photo: Adrian Crycuk Wikimedia Commons

"We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management’s and the Audit Committee’s representations," EY said.

The firm concluded that "we can no longer provide the audit services in accordance with applicable law or professional obligations.”

EY expressed concerns about Super Micro’s board independence from Charles Liang, the company's co-founder, chairman, president, and CEO, as well as other members of management.

The company had hired EY in March 2023 to perform the audit for the fiscal year ending June 30. Needham analysts suspended the investment firm's rating on the company on Oct. 30 following news of EY’s resignation.

The investment firm stated that the accounting firm's action “raises considerable questions about the validity of Super Micro's current and past financial statements and also raises significant questions about Super Micro's corporate governance and management's commitment to integrity and ethical values.”