Urban One, Inc has officially announced a shift in its financial oversight structure, parting ways with Ernst & Young LLP (EY) and appointing PricewaterhouseCoopers LLC (PwC) as its new independent registered public accounting firm. This change, approved by the audit committee of the company’s board of directors, took effect on April 7.
The company’s decision follows a period during which its financial statements, audited by EY for the years ending December 31, 2024, and December 31, 2023, received no adverse opinions. These reports were not qualified or modified concerning uncertainties, audit scope, or accounting principles.
Despite the smooth transition in external auditors, Urban One disclosed multiple material weaknesses in its internal control over financial reporting. These issues, highlighted in their annual reports, range from inadequate entity-level controls and IT general controls to insufficient management review controls. The deficiencies noted include the failure to restrict user access adequately, lack of precise management reviews, and inadequate controls over the financial statement close process.
Particularly concerning were the lapses in internal controls related to IT equipment purchases and the recognition of such equipment as fixed assets. These gaps, according to the company, stemmed from insufficient personnel with the necessary GAAP knowledge and experience in overseeing internal controls, which has been a recurring theme in the firm’s challenges with maintaining robust financial reporting practices.
The company has made efforts to remediate some of these weaknesses as reflected in its latest annual report, yet the continuation of several material weaknesses suggests an ongoing struggle with internal governance.
Urban One has provided EY with a copy of the disclosure made in this latest SEC filing and has received a confirmation letter from EY, filed with the SEC, agreeing with the disclosures made.
As Urban One transitions to PwC for its fiscal year ending December 31, 2025, it has not sought advice from PwC on any accounting or auditing matters during the consultation period, ensuring an independent start to their new auditor relationship.
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