Auditor resigns
🚨 TrustThe external audit firm quits, often citing unwillingness to rely on management's representations.
Typical size
15-40%
Timeframe
Immediate and severe
Evidence
1 logged event
Why it moves the price
Auditors face severe liability for resigning loudly and rarely do it without cause. It is close to a professional statement that the numbers cannot be relied on.
What separates a good call from a naive one
One of the strongest negative signals in public markets — stronger than a short seller report, because the auditor had inside access. Replacing an auditor takes months, during which filings are usually late and delisting risk builds.
Measured impact
Every logged event is measured against real closing prices: the move from the close before the event, compared with the S&P 500 over the same window.
Next day
-32.68%
- Median
- -32.68%
- Moved up
- 0% of 1
- vs S&P 500
- -32.37%
After 1 week
-43.61%
- Median
- -43.61%
- Moved up
- 0% of 1
- vs S&P 500
- -42.74%
After 1 month
-28.60%
- Median
- -28.60%
- Moved up
- 0% of 1
- vs S&P 500
- -31.54%
No measured verdict yet — 1 event logged. Three or more are needed before the data says anything useful.
The evidence (1)
Every row is a real event, measured against actual closing prices.
| Date | Stock | What happened | Next day | 1 week | 1 month | vs S&P |
|---|---|---|---|---|---|---|
| Oct 30, 2024 | SMCI | Auditor EY resigned, citing unwillingness to rely on management representations | -32.68% | -43.61% | -28.60% | -32.37% |
Measured from historical closing prices. Past reactions do not guarantee future ones. Not financial advice.