The largest media company superserving Black consumers across the U.S. is moving to its third outside independent accounting firm in under two years, according to a SEC filing made late Wednesday.
Urban One is dumping EY after less than two years. Ernst & Young was brought on in July 2023 after the company led by Alfred Liggins III had a falling out with BDO over how it handled Urban One’s former investment in a casino gaming operation near its Silver Spring, Md., headquarters.
The switch to EY came after significant delays and the need for earnings restatements in 2022. Now, Urban One and its Chief Financial Officer, Peter D. Thompson, has retained PricewaterhouseCoopers (PwC).
Although EY issued clean audit reports for FY 2023 and FY 2024 with no adverse opinions or qualifications, Urban One told the SEC that the firm continued to struggle with material weaknesses in its internal controls over financial reporting. In particular, deficiencies were identified in areas such as control environment, IT operations, financial close processes, and management review controls.
Urban One disclosed that a shortage of qualified personnel with sufficient GAAP knowledge contributed to these ongoing issues. It also stated there were no disagreements with EY on accounting matters or auditing procedures leading up to the decision to part ways. The company’s Audit Committee authorized EY to respond fully to any inquiries from PwC as part of the transition. Urban One also confirmed it had not consulted with PwC prior to the change regarding any particular accounting treatments or audit opinions.
The owner of radio stations and two cable TV networks, in addition to national radio arm Reach Media, says it will continue to prioritize improvements in its financial reporting processes, with PwC taking over as its auditor effective immediately.
