Donald Trump's media company, Trump Media & Technology Group Corp. (TMTG), has reportedly chosen to keep an auditor with a "100% deficiency" rate.
Bloomberg reported this week that TMTG said in recent filings that it will keep the BF Borgers accounting firm as its auditor.
Bloomberg said this Colorado-based firm has a history of being flagged for failures in its auditing, including a "100% deficiency rate" in audits reviewed by the U.S. watchdog, the Public Company Accounting Oversight Board (PCAOB) in the past two years.
BF Borgers, a Colorado-based firm with more experience with companies traded over the counter, has not been without its share of regulatory issues. A Canadian regulator found the firm violated its rules, and the PCAOB found multiple deficiencies in every audit it reviewed from the firm over the past two years. Despite these red flags, TMTG has retained BF Borgers as its auditor after becoming publicly traded.
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Trump Media criticized reports on BF Borgers' record as partisan, stating they were, "preemptively attacking our auditors before they’ve even begun their work for us as a public company."
BF Borgers did not respond to requests for comment made by Bloomberg.
The firm's client list is mostly smaller companies, but TMTG is now valued at roughly $5 billion. Shares in TMTG fell 10% following the news.
The PCAOB, created to oversee auditors and restore investor confidence, found that BF Borgers needed more staff to handle its growing client list. One person was responsible for 147 audits. The watchdog highlighted issues with the firm's testing procedures for critical financial measures.