8-K: Eva Live Inc. Changes Accounting Firms Amid Audit Delays

Eva Live Inc. dismisses Michael Gillespie & Associates, PLLC and engages Olayinka Oyebola & Co. as its new independent registered public accounting firm due to delays and scope of audit requests.

Summary

• On March 21, 2025, Eva Live Inc.'s Board of Directors approved the dismissal of Michael Gillespie & Associates, PLLC (Gillespie) as the company's independent registered public accounting firm.
• Gillespie was engaged on May 5, 2024, but had not completed any audit reports for the company.
• The company cited delays in the commencement of the audit and the auditor's requests for documentation beyond the customary scope as reasons for the change.
• Gillespie did not issue any audit reports containing adverse opinions, disclaimers, or modifications.
• On March 21, 2025, Eva Live Inc. engaged Olayinka Oyebola & Co. (Olayinka) as its independent registered public accounting firm for the fiscal years ending 2023 and 2024.
• The selection of Olayinka was based on its ability to meet the company's reporting requirements and its alignment with the company's needs.
• Eva Live Inc. provided Gillespie with a copy of the disclosure and requested a letter to the SEC stating whether they agree with the statements made.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the change in auditors and the reasons cited for the dismissal, which could raise concerns about the company's financial reporting.

Positives

• The company has promptly engaged a new auditor, Olayinka Oyebola & Co., to ensure timely completion of audits for the fiscal years ending 2023 and 2024.
• The company is seeking confirmation from the previous auditor regarding the accuracy of the disclosure.

Negatives

• The change in auditors may raise concerns about the company's financial reporting and internal controls.
• The delays in the commencement of the audit by the previous auditor and disagreements over the scope of documentation required are potential red flags.

Risks

• The new auditor may require additional time to become familiar with the company's operations and financial reporting systems.
• There is a risk that the previous auditor may not agree with the company's statements regarding the reasons for the dismissal.
• Any disagreement with the previous auditor could lead to further scrutiny from regulators or investors.

Future Outlook

The company anticipates that Olayinka Oyebola & Co. will complete the audits for the fiscal years ending 2023 and 2024.

Management Comments

• The Company determined that it was in the best interest of the Company and its shareholders to make this change due to delays in the commencement of the audit and the auditors requests for documentation that the Company believes were beyond the customary scope necessary for the engagement.
• The selection of Olayinka was based on its ability to meet the Company's reporting requirements and its alignment with the Company's needs.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues with a company's financial reporting or internal controls. Investors often scrutinize these changes to understand the reasons behind them and assess any potential risks.

Comparison to Industry Standards

• Auditor changes are a normal part of business, but frequent changes can be a red flag.
• Companies like Enron and WorldCom had multiple auditor changes before their scandals came to light, highlighting the importance of stability in the auditing process.
• Compared to industry best practices, a smooth transition with clear communication is crucial; companies like Apple and Microsoft tend to have long-standing relationships with their auditors, fostering trust and transparency.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the potential implications for the company's financial reporting.
• Employees in the finance and accounting departments may experience changes in workload and responsibilities as a result of the new auditor.

Next Steps

• Olayinka Oyebola & Co. will conduct audits for the fiscal years ending 2023 and 2024.
• Michael Gillespie & Associates, PLLC is expected to provide a letter to the SEC regarding their agreement with the company's statements.

Key Dates

Keywords

auditor, accounting firm, Eva Live Inc., Olayinka Oyebola & Co., Michael Gillespie & Associates, audit, financial reporting