La Rosa Holdings Replaces Auditor; Audit Report Raised Going Concern

What Happened
La Rosa Holdings Corp. (LRHC) filed an 8‑K reporting that its Audit Committee dismissed CBIZ CPAs P.C. and appointed Rosenberg Rich Baker Berman, P.A. (RRBB) as the company’s independent registered public accounting firm, both effective September 16, 2026. CBIZ CPAs’ audit report for the fiscal year ended December 31, 2025 did not include an adverse or disclaimer opinion or qualification, but did include an explanatory paragraph expressing substantial doubt about the company’s ability to continue as a going concern. The filing discloses multiple material weaknesses in the company’s internal control over financial reporting and restatement-related control failures.

Key Details

• Auditor change effective September 16, 2026: CBIZ CPAs dismissed; RRBB appointed.
• CBIZ CPAs’ 2025 audit included an explanatory paragraph on substantial doubt about LRHC’s ability to continue as a going concern.
• Disclosed material weaknesses include lack of segregation of duties, weak control environment, limited accounting resources, absence of formalized policies/procedures, and insufficient cybersecurity staffing.
• The company identified control failures over significant accounting estimates (e.g., goodwill impairment, tax provision prepared by external consultants), revenue recognition (ASC 606 gross vs. net issues) that led to errors and a restatement, and inadequate controls over SEC filings and cybersecurity processes. CBIZ provided a letter dated September 18, 2026 (attached as Exhibit 16.1).

Why It Matters
For investors, a change in auditors combined with a prior audit’s going‑concern language and disclosed material weaknesses signals elevated financial reporting and operational risk. The restatement and weaknesses in revenue recognition, accounting estimates, and internal controls could affect the reliability and comparability of past financial results until issues are remediated. The company’s next filings and RRBB’s future audit opinion will be important to monitor for signs of improved controls and clarity on the company’s financial condition.