17 Education & Technology Group (NASDAQ:YQ) replaced Deloitte Touche Tohmatsu as its independent registered public accounting firm with Marcum Asia CPAs, effective May 27, 2026, for the year ending December 31, 2026.
Deloitte’s 2024 and 2025 audit reports were unqualified, with no disagreements or reportable events disclosed.
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Positive
Appointment of Marcum Asia CPAs as new independent auditor effective May 27, 2026
Deloitte issued unqualified audit opinions for fiscal years 2024 and 2025
Company reports no disagreements with Deloitte on accounting or auditing matters through May 27, 2026
Company reports no reportable events under Item 16F(a)(1)(v) of Form 20-F
Company coordinating with both firms to support a seamless auditor transition
Negative
Dismissal of Deloitte as independent registered public accounting firm effective May 27, 2026
Auditor change may involve transition and onboarding costs with the new firm
News Market Reaction – YQ
-3.99%
1 alert
-3.99%Session close to close
$26.60MMarket Cap
0.1xRel. Volume
In the May 28 session, YQ declined 3.99%, reflecting a moderate negative market reaction.
This announcement detailed a change of independent auditor, with Deloitte’s prior reports on 2024 an...
Analysis
This announcement detailed a change of independent auditor, with Deloitte’s prior reports on 2024 and 2025 financials free of adverse opinions, disagreements, or reportable events. It extended the company’s recent governance and disclosure theme, following its 20-F filing and CFO appointment. Investors may watch future audited results with Marcum Asia, as well as revenue trends and net loss levels, to assess how financial oversight and operational performance evolve.
Key Figures
Auditor dismissal date:May 27, 2026New auditor effective date:May 27, 2026Audit years covered:Years ended December 31, 2024 and 2025+1 more
4 metrics
Auditor dismissal dateMay 27, 2026Effective date Deloitte was dismissed as auditor
New auditor effective dateMay 27, 2026Effective date Marcum Asia was appointed
Audit years coveredYears ended December 31, 2024 and 2025Periods for Deloitte’s unqualified audit reports
Current audit yearYear ending December 31, 2026Engagement period for Marcum Asia
Q3 2025 results with steep revenue drop and sizable net loss.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent news, including filings and management changes, often saw modest negative or muted price reactions, even when operational metrics showed improvement.
Recent Company History
Over the past six months, YQ has focused on regulatory filings and financial updates. A 20-F annual report on Apr 29, 2026 and multiple 6-K earnings updates detailed sharply lower revenues but improving margins and narrowed losses. A CFO appointment on Mar 24, 2026 highlighted efforts to strengthen financial leadership. Market reactions ranged from a -10% move on Q3 2025 results to small declines or flat trading, suggesting cautious sentiment toward corporate and earnings disclosures. Today’s auditor change fits into this governance-focused news flow.
Key Terms
independent registered public accounting firm, audit committee, adverse opinion, disclaimer of opinion, +2 more
6 terms
independent registered public accounting firmfinancial
"Deloitte ... as the Company’s independent registered public accounting firm"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
audit committeefinancial
"the Company’s board of directors and the audit committee of the board approved"
A company's audit committee is a small group of board members who act like independent inspectors for the firm's finances, overseeing how financial reports are prepared, monitoring internal controls, and managing the relationship with external auditors. Investors care because a strong audit committee reduces the risk of accounting errors, fraud, or misleading statements, making financial statements more trustworthy and helping protect shareholder value.
adverse opinionfinancial
"contained no adverse opinion or disclaimer of opinion, and were not qualified"
An adverse opinion is an auditor’s formal conclusion that a company’s financial statements contain serious errors or omissions and therefore cannot be relied upon as a true picture of the business. For investors it’s a major red flag—like a mechanic saying a car is unsafe—because it signals heightened risk of fraud, restatements, regulatory trouble or loss of access to capital, any of which can sharply affect share value.
disclaimer of opinionfinancial
"contained no adverse opinion or disclaimer of opinion, and were not qualified"
A disclaimer of opinion is a formal statement from an independent auditor saying they cannot give an opinion on a company’s financial statements because they lacked the information or access needed to check the numbers. For investors it is a red flag—like a mechanic who couldn’t inspect an engine and won’t say if the car is safe—because it means the accounts can’t be relied on with confidence and invites extra caution and further investigation.
reportable eventsregulatory
"and (ii) no reportable events (as defined in Item 16F(a)(1)(v) of Form 20-F)."
Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.
Form 20-Fregulatory
"Item 16F(a)(1)(iv) of Form 20-F) between the Company and Deloitte"
Form 20-F is the standardized annual disclosure that non-U.S. companies must file with the U.S. securities regulator when their shares are traded in the U.S.; it contains audited financial statements, a plain-language description of the business, management discussion, governance details and key risk factors. It matters to investors because it provides a consistent, comparable company “report card” and rulebook, helping buyers assess financial health, governance and risks before investing.
BEIJING, May 28, 2026 (GLOBE NEWSWIRE) -- 17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech” or the “Company”), a leading education technology company in China, today announced that the Company’s board of directors and the audit committee of the board approved the dismissal of Deloitte Touche Tohmatsu Certified Public Accountants LLP (“Deloitte”) as the Company’s independent registered public accounting firm, effective May 27, 2026, and the appointment of Marcum Asia CPAs LLP (“Marcum Asia”) as the Company’s new independent registered public accounting firm for the year ending December 31, 2026, effective May 27, 2026.
The reports of Deloitte on the Company’s consolidated financial statements for the years ended December 31, 2024 and 2025 contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.
During the years ended December 31, 2024 and 2025, and the subsequent interim period through May 27, 2026, there have been (i) no disagreements (as defined in Item 16F(a)(1)(iv) of Form 20-F) between the Company and Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Deloitte, would have caused Deloitte to make reference thereto in their reports on the Company’s consolidated financial statements for such years, and (ii) no reportable events (as defined in Item 16F(a)(1)(v) of Form 20-F).
The Company is working closely with Marcum Asia and Deloitte to ensure a seamless transition. The Company would like to express its sincere gratitude to Deloitte for its professionalism and quality of services rendered to the Company over the past few years.
About 17 Education & Technology Group Inc.
17 Education & Technology Group Inc. is a leading education technology company in China, offering smart in-school classroom solution that delivers data-driven teaching, learning and assessment products to teachers, students and parents. Leveraging its extensive knowledge and expertise obtained from in-school business over the past decade, the Company provides teaching and learning SaaS offerings to facilitate the digital transformation and upgrade at Chinese schools, with a focus on improving the efficiency and effectiveness of core teaching and learning scenarios such as homework assignments and in-class teaching. The product utilizes the Company’s technology and data insights to provide personalized and targeted learning and exercise content that is aimed at improving students’ learning efficiency.
For investor and media inquiries, please contact:
17 Education & Technology Group Inc. Ms. Lara Zhao Investor Relations Manager E-mail: ir@17zuoye.com
FAQ
What auditor change did 17 Education & Technology Group (NASDAQ:YQ) announce on May 28, 2026?
17 Education & Technology Group announced it dismissed Deloitte and appointed Marcum Asia CPAs as its independent registered public accounting firm, effective May 27, 2026. According to the company, Marcum Asia will audit the year ending December 31, 2026.
Why did 17 Education & Technology Group (YQ) replace Deloitte with Marcum Asia as auditor?
17 Education & Technology Group disclosed the change from Deloitte to Marcum Asia but did not state a specific reason. According to the company, its board and audit committee approved the dismissal and new appointment, and the firms are cooperating for a smooth transition.
Were there any disagreements between 17 Education & Technology Group (YQ) and Deloitte before the auditor change?
The company reports there were no disagreements with Deloitte on accounting principles, financial disclosure, or audit procedures during 2024, 2025, and through May 27, 2026. According to the company, there were also no reportable events under Item 16F(a)(1)(v) of Form 20-F.
How did Deloitte’s audit opinions on 17 Education & Technology Group (YQ) look for 2024 and 2025?
Deloitte’s reports on 17 Education & Technology Group’s 2024 and 2025 consolidated financial statements contained no adverse opinion or disclaimer. According to the company, the opinions were not qualified or modified regarding uncertainty, audit scope, or accounting principles.
When is Marcum Asia’s engagement with 17 Education & Technology Group (YQ) effective?
Marcum Asia’s appointment as 17 Education & Technology Group’s independent registered public accounting firm is effective May 27, 2026. According to the company, Marcum Asia will serve as auditor for the fiscal year ending December 31, 2026.
How is 17 Education & Technology Group (YQ) managing the transition between Deloitte and Marcum Asia?
17 Education & Technology Group states it is working closely with both Deloitte and Marcum Asia to ensure a seamless transition. According to the company, this collaboration aims to support continuity in auditing its consolidated financial statements.
