América Móvil received a notice from its independent registered public accounting firm, Mancera S.C., a member of Ernst & Young Global Limited (“Mancera/EY”), stating that Mancera/EY has withdrawn its opinion, dated April 29, 2024, relating to the effectiveness of the Company’s internal control over financial reporting (“ICFR”) as of December 31, 2023.
Subsequent to the filing of the Company’s 20-F, on August 14, 2024, Mancera/EY informed the Company and its Audit and Corporate Practices Committee (Comité de Auditoría y Prácticas Societarias) that the Public Company Accounting Oversight Board (PCAOB) commenced an inspection of Mancera/EY’s integrated audit of the Company’s consolidated financial statements for the fiscal year ended December 31, 2023. As a result of this inspection, Mancera/EY has performed additional procedures it had omitted on internal controls and identified internal control deficiencies with respect to Teléfonos de México, S.A.B. de C.V., certain of its subsidiaries and certain other subsidiaries related to the wireline business in Mexico and concluded that such deficiencies have resulted in material weaknesses in the Company’s ICFR.
In its January 9 letter, Mancera/EY requested the Company to take necessary measures to notify the public that Mancera/EY’s opinion relating to the effectiveness of the Company’s ICFR as of December 31, 2023 should no longer be relied upon. Since the receipt of the January 9 letter, the Company has been providing Mancera/EY with the additional information required for the additional procedures being conducted and has been in constant communication with Mancera/EY to address any pending or additional concerns they have over the Company’s ICFR for the relevant periods. To date, Mancera/EY continues to perform additional procedures it had omitted, that, in their opinion, may result in the identification of one or more additional material weaknesses in the Company’s ICFR, including in other subsidiaries.
In its January 9 letter, Mancera/EY did say that, to such date, there are no impacts on the Company’s consolidated financial statements for the fiscal year ended December 31, 2023 and, therefore, has not withdrawn its audit report on the consolidated financial statements included in the 20-F.
The Company is currently reviewing Mancera/EY’s conclusions relating to the effectiveness of the Company’s ICFR in order to make its own conclusions regarding the effectiveness of the Company’s ICFR for the relevant periods. The Company will continue to work closely with Mancera/EY to address their comments relating to the deficiencies they have identified and to remediate any such deficiencies as appropriate.
