Party City Holdco Inc.: auditor change — Party City restates Q3 2022 financials; auditor EY resigns over going-concern omission

Party City Holdco Inc.

Ernst & Young resigned as auditor on June 5, 2023, citing failure to disclose substantial doubt about going concern in Q3 2022 10-Q.
Audit Committee concluded Q3 2022 interim financial statements should no longer be relied upon; restatement planned.
Company identified material weakness in internal control over going-concern analysis under ASC 205-40 as of November 8, 2022.
Party City disagrees with EY's characterization but proceeds with disclosure; stock trades OTC Pink (PRTYQ).

item 4.01 item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Ernst & Young LLP resigned as auditor of Party City Holdco Inc..

Action: resignation
Auditor: Ernst & Young LLP

Exact text from the filing

On June 5, 2023, the Audit Committee (the “Audit Committee”) of the Board of Directors of Party City Holdco Inc. (the “Company”) received a letter from Ernst & Young LLP (“EY”) stating that EY had resigned as the Company’s independent registered accounting firm for the year ended December 31, 2022.

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Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Party City Holdco Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: Ernst & Young LLP

Exact text from the filing

on June 6, 2023, the Audit Committee concluded, after discussion with the Company’s management and EY, that the interim unaudited financial statements included within the Third Quarter Form 10-Q should no longer be relied upon.

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Source: SEC EDGAR

accession 0000950142-23-001658

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