Washington (May 8, 2003) -- Following the defection of five partners and some $8 million in audit business from Grassi & Co., to its Long Island rival Marcum & Kliegman, networking and software consulting firm DynTek announced this week that it has moved its audit work to M&K.
M&K managing partner Jeffrey Weiner attributed the auditor switch to the personnel changes at Grassi & Co.
"The partners who serviced that account no longer work for that firm. and Grassi no longer has the expertise to do accounting work for SEC clients," he said.
Grassi recently told WebCPA that M&K overestimated its former audit business by $2 million, and that his former partners' clients "all have ongoing concerns and most are on life support."
The SEC filing noting the auditor change acknowledged that Grassi & Co.'s report on the company's financial statements for the fiscal years ended June 30, 2002 and 2001 contained an expression of substantial doubt regarding the company's ability to continue as a going concern.
Weiner said the going concern language did not affect his faith in his new client. "They had going concerns in 2002 and 2001 and they're still in business," he said.
Marcum & Kliegman is ranked No. 41 on Accounting Today's Top Firms list with $32 million in 2002 revenue, while Grassi of Lake Success, N.Y., is ranked 96 with an estimated $14.9 million in 2002 revenue. That estimate did not factor in the loss of the five partners.
-- Tracey Miller-Segarra
