ALTISOURCE ASSET MANAGEMENT CORPORATION (NYSEMKT:AAMC) Files An 8-K Changes in Registrant’s Certifying Accountant

ALTISOURCE ASSET MANAGEMENT CORPORATION (NYSEMKT:AAMC) Files An 8-K Changes in Registrant’s Certifying Accountant

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Item 4.01

Changes in Registrants Certifying Accountant
to the approval of the Audit Committee of the Board of Directors
(the Audit Committee), on May 19, 2017, Altisource Asset
Management Corporation (AAMC or the Company) dismissed Deloitte
Touche LLP (Deloitte) as the Companys independent registered
public accounting firm, and engaged Ernst Young LLP (EY) as the
Companys independent registered public accounting firm for the
fiscal year ending December 31, 2017. The decision to dismiss
Deloitte and engage EY was made as a result of a competitive
bidding process to determine the Companys independent registered
public accounting firm for the fiscal year ending December 31,
2017.
Deloitte’s reports on the consolidated financial statements of
the Company as of and for years ended December 31, 2016 and
December 31, 2015 did not contain any adverse opinion or a
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope or accounting principles. During the
Companys fiscal years ended December 31, 2016 and December 31,
2015 and the subsequent interim period from January 1, 2017
through May 19, 2017, there were no disagreements with Deloitte
on any matter of accounting principles or practices, financial
statement disclosures or auditing scope or procedures that, if
not resolved to Deloittes satisfaction, would have caused
Deloitte to make reference to the subject matter of the
disagreement in connection with its reports. There were no
reportable events as defined in Item 304(a)(1)(v) of Regulation
S-K during the interim period from January 1, 2017 through May
19, 2017.
During the Companys fiscal years ended December 31, 2016 and
December 31, 2015, there were two reportable events as defined in
Item 304(a)(1)(v) of Regulation S-K, which are described below.
(1)
As previously disclosed in the Companys Annual Report on Form
10-K for the fiscal year ended December 31, 2015, subsequent
to the filing of the Companys Form 10-K for the year ended
December 31, 2014, the Public Company Accounting Oversight
Board conducted an inspection of Deloittes audit of the
Companys 2014 consolidated financial statements and internal
control over financial reporting. Following this inspection,
during the fourth quarter of 2015, Deloitte requested a
re-evaluation of certain internal controls. In re-evaluating
these controls, management identified two control
deficiencies in internal control over financial reporting and
determined that these deficiencies were material weaknesses
at December 31, 2014. The material weaknesses were related to
the design of 1) the review of the broker price opinions used
to record real estate owned and real estate assets held for
sale, including monitoring the internal controls that are in
place at the vendors utilized by the Company to provide fair
value information for individual properties and 2) the review
of the assumptions used to determine the fair value of
mortgage loans, in each case related to the financial
statements of Altisource Residential Corporation (RESI),
which had been consolidated into the Companys consolidated
financial statements for all periods through December 31,
2015. These material weaknesses had no impact on the Companys
financial position, results of operations or cash flows as of
and for the year ended December 31, 2014. As of December 31,
2015, the Company had remediated the material weakness
relating to the review of the broker price opinions used to
record real estate owned and real estate assets held for
sale. The second material weakness, related to the review of
assumptions, including consideration of market transactions
utilized in its determination of the fair value of the
mortgage loans, remained as of December 31, 2015; however,
this remaining material weakness had no impact on the
Companys financial position, results of operations or cash
flows as of and for the year ended December 31, 2015. In
addition, as a result of the deconsolidation of RESI from the
Company’s consolidated financial statements as of January 1,
2016, the second material weakness relating to the
assumptions utilized in determining the fair value of
mortgage loans was no longer applicable to the Company
immediately following December 31, 2015.
(2)
As previously disclosed in the Companys Quarterly Report on
Form 10-Q/A for the three months ended June 30, 2016, the
Company had concluded that its disclosure controls and
procedures as of June 30, 2016 were not effective at the
reasonable assurance level. This conclusion was based solely
on a material weakness in the Companys internal control over
financial reporting relating to the operation of its review
procedures for the consolidated financial statements and
footnotes, which resulted in an error in the disclosure of
loss per share of common stock for the three and six months
ended June 30, 2016. Although the Company had correctly
reported the net loss attributable to stockholders and
weighted average common stock outstanding for the period
ended June 30, 2016, an error was identified in the loss per
share of common stock for the three and six months ended June
30, 2016, causing the Company to amend the Form 10-Q to
correct the error. This material weakness was fully
remediated by the Company as of December 31, 2016.
The Audit Committee has discussed the subject matter of the
foregoing material weaknesses with Deloitte, and the Company has
authorized Deloitte to respond fully to the inquiries of EY
concerning such matters.
During the fiscal years ended December 31, 2016 and December 31,
2015 and the subsequent interim period through May 19, 2017,
neither the Company nor anyone on its behalf consulted with EY
regarding any of the matters or events set forth in Item
304(a)(2)(i) or (ii) of Regulation S-K.
The Company has provided Deloitte with a copy of the foregoing
disclosures and has requested that Deloitte furnish the Company
with a letter addressed to the Securities and Exchange Commission
(the SEC) stating whether or not Deloitte agrees with such
disclosures or, if not, stating the respects in which it does not
agree. The Company has received the requested letter from
Deloitte, and a copy of the letter is filed with this Current
Report on Form 8-K as Exhibit 16.1.
Item 9.01
Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
Description
16.1
Letter to the SEC from Deloitte Touche LLP dated May 25,
2017.


About ALTISOURCE ASSET MANAGEMENT CORPORATION (NYSEMKT:AAMC)

Altisource Asset Management Corporation provides asset management and corporate governance services to institutional investors. The Company’s primary client is Altisource Residential Corporation (Residential). The Company operates through segment, which is focused on providing asset management and certain corporate governance services to Residential. Its business strategy is to provide asset management services to Residential to generate cash available for distribution to its shareholders and thereby growing its earnings, and develop additional investment strategies and vehicles. Residential is a public real estate investment trust (REIT) that acquires and manages single-family rental properties by acquiring sub-performing and non-performing mortgage loans throughout the United States. In addition to providing services to Residential, it also provides management services to NewSource Reinsurance Company Ltd., which is an insurance and reinsurance company.

ALTISOURCE ASSET MANAGEMENT CORPORATION (NYSEMKT:AAMC) Recent Trading Information

ALTISOURCE ASSET MANAGEMENT CORPORATION (NYSEMKT:AAMC) closed its last trading session up +2.95 at 91.95 with 21,218 shares trading hands.

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