8-K: Mesa Air Group Changes Accounting Firms: CBIZ Replaces Marcum LLP

Mesa Air Group has replaced Marcum LLP with CBIZ CPAs P.C. as its independent registered public accounting firm following Marcum's acquisition of CBIZ's attestation business.

Summary

• Mesa Air Group announced a change in its independent registered public accounting firm.
• Marcum LLP will resign effective immediately upon the filing of the Company's Form 10-K for the fiscal year ended September 30, 2024.
• This decision follows CBIZ CPAs P.C.'s acquisition of Marcum's attest business on November 1, 2024.
• The Company has engaged CBIZ as its new independent registered public accounting firm for the fiscal year ending September 30, 2025, with the approval of the Audit Committee.
• There were no disagreements or reportable events between Mesa Air Group and Marcum during the period from April 12, 2024, through March 4, 2025.
• The Company did not consult with CBIZ regarding accounting principles or audit opinions prior to the engagement.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The change in auditors is a procedural matter following an acquisition, and there are no reported disagreements or issues.

Positives

• The transition to a new auditor appears to be smooth, with no reported disagreements or reportable events between Mesa Air Group and Marcum.
• The Audit Committee approved the engagement of CBIZ, indicating proper oversight.

Future Outlook

The company will be audited by CBIZ for the fiscal year ending September 30, 2025.

Industry Context

Changes in auditing firms are not uncommon, especially following mergers and acquisitions within the accounting industry. Companies are required to disclose such changes to maintain transparency with investors.

Comparison to Industry Standards

• The process of changing auditors and disclosing the reasons for the change is standard practice and aligns with SEC regulations.
• Similar transitions occur when larger accounting firms acquire smaller ones, necessitating client reassignment.

Stakeholder Impact

• Shareholders should be aware of the change in auditors, but it is not expected to have a significant impact on the company's operations or financial performance.
• Employees in the finance and accounting departments may experience some changes in processes and procedures as they work with the new auditor.

Next Steps

• Mesa Air Group will file its Form 10-K for the fiscal year ended September 30, 2024.
• CBIZ will audit Mesa Air Group's financial statements for the fiscal year ending September 30, 2025.

Key Dates