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Compass Minerals Blames Audit Trouble for Late Annual Report
The firm will likely report multiple control deficiencies when it belatedly files.
November 30, 2022
Though it has outperformed the broader market for parts of the year, Compass Minerals (CMP), a salt and fertilizer producer, is signaling trouble ahead. The company revealed it would not be able to file its annual report on time after learning its auditor, Ernst & Young, needs more time to audit Compass Minerals’ financial statements and evaluate its internal controls over financial reporting (ICFRs).
In a filing informing the SEC it would not file its annual report on time, Compass revealed Ernst & Young is scrutinizing the company’s salt inventory. When it files, Compass will likely report control deficiencies related to salt inventory kept at depots and warehouses, certain sales processes, and the information technology necessary to prepare its financial statements.
Though Compass says it does not expect the control deficiencies to result in any “material misstatements or omissions” in previously reported financial statements, the company did suggest immaterial adjustments to the select financial information provided November 29, 2022 are possible.
In May, we uncovered an SEC filing discrepancy that suggested Compass did not appear to be acting with urgency to avoid defaulting on its debt.
Related: MDU, SUM, HL, SLCA, PLL, IPI, UUUU, USLM, LGO, SIRE
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