B. Riley Financial Inc. is under scrutiny for its auditing practices and financial transparency. Over the past five years, the company's audit partner at MACRUM has only audited SPACs, raising concerns as B. Riley's equity securities on its balance sheet have increased reliance on Level 3 valuation, which involves unobservable inputs, from 27% in 2021 with $1.4b to 67% in September 2023 with $1b. This shift has led to calls for a real auditor to ensure the accuracy of reported values. Additionally, B. Riley's handling of equity securities holdings and the non-disclosure of CEO/Owner pledged shares have further fueled trust issues, with almost 70% of Equity Securities now valued using the Level 3 method. The situation is complicated by Brian Kahn, one of B. Riley's top clients, who is accused of defaulting on a settlement meant to repay investors who lost hundreds of millions, with the settlement amount over $200M+. This has led to speculation that B. Riley may need to restate its 2023 financials due to cross-default clauses and fraudulent representations. Amidst these allegations, B. Riley has been criticized for focusing on promoting a radiopharma conference rather than addressing investor concerns.