Auditors resign from Usana Health Sciences

Usana Health Sciences announced today that its auditors, Grant Thornton LLP, resigned the engagement. The press release said:

During USANA’s fiscal years ended December 30, 2006 and December 31, 2005, and the interim periods since December 30, 2006, there were no disagreements between the Company and Grant Thornton on any accounting principles or practices, financial statement disclosure, or auditing scope or procedure, except as described below.

As outlined in a Form 8-K filed today by USANA with the Securities and Exchange Commission (SEC), the Audit Committee and Grant Thornton did have an initial disagreement regarding the appropriate scope of review procedures following unfounded, third-party allegations that appeared in the media in March 2007. That difference of opinion was resolved to the satisfaction of Grant Thornton, the Company, and its Audit Committee.

TRANSLATION: Grant Thornton wanted to do more procedures during the review of quarterly numbers and Usana did not allow it.

And the company announced record high net sales ($109.4 million) and record high earnings per share ($0.66) for quarter 2. Go figure. Anyone suspicious of the earnings results in light of the fact that the auditors couldn’t look at them more closely???

Related posts:

1. More on Usana’s auditor resignation
2. Mannatech fires auditors Grant Thornton
3. It’s a Good Thing When the Auditors of a Public Company Quit!!!
4. Usana Health Sciences Misrepresenting Distributor Earnings
5. Usana Health Sciences files 10-Q without auditor review