2023-08-01 17:12:08 ET
Trump SPAC Digital World Acquisition ( NASDAQ: DWAC ), the blank-check firm seeking to merge with Trump's media company, announced that its auditor, Marcum, resigned on Thursday. DWAC fell almost 1% in after hours trading.
During the two most recent fiscal years ended Dec. 31, 2022, and the subsequent interim period, there were no "disagreements' between Marcum and Digital World ( DWAC ), according to an 8-K filing. As of July 27, 2023, Marcum had not completed its audit procedures or issued any reports on the company’s restated 2022 financial statements.
The resignation comes as DWAC learned that on June 21 Marcum, which audited hundreds of SPACs' financials, settled an enforcement action with the Securities and Exchange Commission and agreed to pay $10 million to settle the charges.
"The strain of this growth, however, exposed substantial, widespread, and pre-existing deficiencies in the firm’s underlying quality control policies, procedures, and monitoring. These deficiencies permeated nearly all stages of the audit process and were exacerbated as Marcum took on more SPAC clients," the SEC said in a June press release.
Digital World's ( DWAC ) audit committee is seeking a new independent registered public accounting firm and intends to engage with such firms as soon as possible.
Separately, Donald Trump posted on Truth Social that he hears that he will be gettin another "fake" indictment at 5pm.
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Trump SPAC Digital World Acquisition auditor Marcum resigns