In Professor Gillis recent article he mentioned that NQ would have to file a 6K announcing that they fired PwC and that PwC would have to respond to NQ's disclosure about the termination. When I've seen changes in auditors in the past a letter from the auditor leaving is attached to the 8K or 6K filing that announced the change. Since we have yet to see PwC respond over a week after NQ put out a press release announcing they were changing auditors, I decided to look into the requirements to announce a change in auditor, and more importantly the timing on a response by the auditor leaving. Here's what I found:
When an auditor is informed by a company that it has been terminated, or informs the company that it will no longer serve as the independent auditor, the auditor is required to send a form letter directly to the Office of the Chief Accountant of the SEC. This letter must be sent within four business days, and is matched with the Form 8-K filings.
Since it's been more than 4 business days since NQ changed auditors, I think I might have an explanation about why we haven't seen a filing with PwC's response. The one 6K filing to date about the change didn't actually announce the change in the filing, it just attached the press release announcing the change. I don't pretend to understand all of the SEC reporting requirements, however I suspect that this did not count as an official SEC disclosure of the change, and that the real one is yet to be filed. The real one will contain the letter from PwC announcing whether they agree with NQ's description of what happened. We can all speculate about why NQ would delay the inevitable assuming I'm right but realist know why. Delusional longs will find out.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.