Shepherd's Finance, LLC Dismisses Independent Auditor BDO USA

What Happened
Shepherd's Finance, LLC filed an 8-K (Item 4.01) on August 12, 2026 stating that it notified BDO USA, P.C. on August 10, 2026 that BDO would no longer serve as the company's independent registered public accounting firm, effective immediately. The dismissal was approved by the Audit Committee. BDO’s audit reports on the financial statements for the fiscal years ended December 31, 2025 and 2024 were not adverse, disclaimed, or qualified, and BDO reported no disagreements or “reportable events” with the company during those periods through August 10, 2026.

Key Details

• Dismissal date notified: August 10, 2026; 8-K filed August 12, 2026.
• Audit Committee approved the dismissal.
• BDO’s audit reports for fiscal years ended Dec 31, 2025 and 2024 were unqualified (no adverse opinion, disclaimer, or qualifications).
• BDO reported no disagreements or reportable events during the two most recent fiscal years and subsequent interim periods.
• The filing includes a letter from BDO to the SEC dated August 12, 2026; the company did not identify a successor auditor in this 8-K.

Why It Matters
A change in independent auditor is a material corporate event investors watch because it can affect continuity and oversight of financial reporting. In this case, the outgoing auditor’s reports were clean and BDO reported no disagreements or reportable events, which indicates no immediate red flags disclosed in this filing. However, investors should monitor upcoming filings for disclosure of the successor auditor and any changes to audit scope or accounting practices in future audited financial statements.