Company: RILYN
Filing Date: 2025-10-22
Form Type: DEF 14A
Source: 0001213900-25-101228
Chunk: 18

Company: B. Riley Financial, Inc.
Filing Date: 2025-10-22
Form: DEF 14A
Chunk 18
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 lack of appropriate approval in accordance with Company policy over significant decisions involving goodwill. •The Company identified a material weakness related to the design and operating effectiveness of controls related to journal entry review and approval. A lack of segregation of duties within a journal entry approval workflow was identified. A system workflow did not systemically prevent individuals who could submit certain journal entries to also approve the same entries. Additionally, the Company did not retain evidence of review of certain journal entries. •The Company identified material weaknesses in controls related to ITGCs at Bebe Stores Inc. in the areas of user access, program change management, and IT operations over IT systems and the reports generated from these systems used in the execution of controls that support the Company’s financial reporting processes. As a result, business process automated and manual controls that were dependent on the affected ITGCs could have been adversely impacted. Additionally, the Company did not consistently retain evidence of review, further contributing to the material weakness. •The Company identified a material weakness in controls due to its inability to rely on the SOC 1 Type 2 reports associated with two third -partyservice organizations that support significant elements of its financial reporting processes over B. Riley Retail Solutions, LLC. Specifically, the Company did not have adequate ITGCs in place over the IT systems and related reports at these third -partyservice providers, which are used in the execution of controls supporting the Company’s financial reporting. As a result, business process automated and manual controls that were dependent on these ITGCs at the service organizations could have been adversely impacted. The reportable events disclosed above were discussed among the Audit Committee and Marcum. The Company provided Marcum with a copy of the disclosures above and requested that Marcum furnish the Company with a letter addressed to the SEC stating whether it agrees with the statements made herein and, if not, stating the respects in which it does not agree. A copy of Marcum’s letter, dated September 12, 2025, is filed as Exhibit 16.1 to the Company’s Current Report on Form 8 -Kfiled on September 12, 2025. 9 Appointment of New Independent Registered Public Accounting Firm As previously disclosed in the Company’s Current Report on Form 8 -Kfiled with the SEC on September 12, 2025, on September 8, 2025, the Audit Committee approved the appointment of BDO as the Company’s independent registered public accounting firm to perform independent audit services for the fiscal year ending December 31,