In a recent filing with the Securities and Exchange Commission, ContextLogic Inc. (NASDAQ:WISH), a retail and e-commerce company, announced changes to its financial oversight. Effective Monday, the company's Audit Committee replaced PricewaterhouseCoopers LLP (PwC) with BPM LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2024.
The decision to change auditors came after a competitive selection process. The company's previous reports from PwC for the fiscal years 2022 and 2023 were without adverse opinions or disclaimers, and there were no disagreements on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have required PwC to report on such disagreements.
However, ContextLogic did acknowledge the existence of material weaknesses in its internal controls over financial reporting as of December 31, 2023, which persisted through the first two quarters of 2024. These weaknesses pertained to the overall control environment and specific information technology general controls. These issues were communicated between the Audit Committee and PwC, which has been authorized to respond fully to inquiries from BPM regarding these matters.
PwC has provided a letter, dated today, agreeing with the Company's statements in the filing. This move comes as ContextLogic continues to address its internal control deficiencies and seeks to strengthen its financial reporting processes.
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