The board audit committee of Life Partners Holdings Inc. has named Whitley Penn L.L.P. to be the company’s new accounting firm.
Life Partners, Waco, Texas (Nasdaq:LPHI), says Whitley Penn will audit the company’s consolidated financial statements for fiscal year ending Feb. 28, 2011, and re-audit the consolidated financial statements for the fiscal year ending Feb. 28, 2010.
“The company’s prior auditors, Ernst & Young, withdrew its opinion for the fiscal year 2010 statements following a disagreement with the company,” Life Partners says.
The hiring of Whitley Penn and the audits of the statements should help Life Partners complete its annual report and resume submitting filings to the U.S. Securities and Exchange Commission (SEC), Life Partners says.
Life Partners has been helping clients invest in life settlements since 1991.
The company recently told the SEC it would need more time to file the Form 10-K annual report for the fiscal year ending Feb. 28, 2011, because managers had not yet completed the determination of the timing and amount of some non-cash impairment charges relating to life settlements held for investment.
Life Partners also has encountered unanticipated delays resulting from a reexamination of revenue-recognition policies, the company says.
- Allison Bell