RSM US resigned as Revolution Lighting Technologies’ independent registered public accounting firm on 14 June. In an SEC filing dated 20 June, the company disclosed that RSM stated that it had concluded based on the totality of the information reviewed from the Audit Committee’s recent independent investigation and in its professional judgment, it could no longer rely on the management representations in connection with the audit of the Company’s 2018 internal control over financial reporting and consolidated financial statements.
The company’s problems date back to 2014 and are based on certain revenue recognition practices, specifically the booking of revenue using ‘bill and hold’ accounting. An SEC investigation is ongoing and Revolution Lighting also faces the possibility of being delisted from the Nasdaq stock exchange.
