Going concern opinions in audit reports are becoming more rare and situations like this one might -- MIGHT! -- have something to do with it:
Ceres fired KPMG because of a disagreement over issues concerning language in its past two yearly reports.
“KPMG’s reports contained a paragraph stating that ‘The Company incurred recurring losses and expects the current level of cash and cash equivalents will only be sufficient to fund operations until January 2016 which raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty,’” Cere’s Feb. 23 filing said.
KPMG’s conclusion appeared several times in Ceres’ 2014 and 2015 annual reports. Ceres officials did not agree with KPMG’s conclusion and decided to make a change.
Sentiment: Strong Sell