8-K: FingerMotion Inc. Changes Independent Auditor from Centurion ZD CPA & Co. to CT International LLP

FingerMotion Inc. has replaced its independent auditor, Centurion ZD CPA & Co., with CT International LLP, effective September 10, 2024.

Summary

• FingerMotion Inc. has terminated Centurion ZD CPA & Co. as their independent registered public accounting firm.
• The change was approved by the Board of Directors and the Audit Committee on September 10, 2024.
• CT International LLP has been engaged as the new independent registered public accounting firm, also effective September 10, 2024.
• Centurion's audit reports for the fiscal years ended February 29, 2024, and February 28, 2023, did not contain any adverse opinions or disclaimers.
• There were no disagreements between FingerMotion and Centurion regarding accounting principles, financial statement disclosures, or auditing procedures.
• There were no reportable events as described in Item 304(a)(1)(v) of Regulation S-K during the two most recent fiscal years and the subsequent interim period through the termination date.
• FingerMotion provided Centurion with a copy of the 8-K report and requested a letter of agreement with the statements made.
• Centurion's letter, dated September 12, 2024, confirms their agreement with the statements in paragraphs 2 through 5 of the 8-K report.
• FingerMotion did not consult with CT International regarding accounting principles or audit opinions prior to their appointment.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors with no reported issues, suggesting a neutral to slightly positive sentiment. The lack of any negative findings or disagreements is reassuring.

Positives

• The transition of auditors appears to be smooth with no reported disagreements or issues.
• Centurion's audit reports for the past two fiscal years did not have any adverse opinions or disclaimers, indicating a clean audit history.
• The company has complied with SEC regulations by providing Centurion with a copy of the 8-K report and requesting a letter of agreement.

Risks

• The change in auditors could potentially raise questions from investors or stakeholders, although no issues were reported.
• There is a risk of potential disruption during the transition to the new auditor, although this is not explicitly mentioned.

Industry Context

Changes in auditors are not uncommon, but they are closely scrutinized by investors and regulators to ensure there are no underlying issues with the company's financial reporting. This change appears to be a routine transition with no reported issues.

Comparison to Industry Standards

• The process of changing auditors is a standard practice in the industry, and FingerMotion's approach appears to be in line with typical procedures.
• Companies often change auditors for various reasons, including cost, expertise, or rotation requirements.
• The fact that there were no disagreements or reportable events is a positive sign, as it indicates that the transition is not due to any underlying issues with the company's financials.

Stakeholder Impact

• Shareholders may be interested in the change of auditors, but the lack of reported issues should be reassuring.
• Employees are unlikely to be directly impacted by this change.
• Customers and suppliers are unlikely to be directly impacted by this change.
• Creditors may review the change of auditors as part of their due diligence.

Key Dates

Keywords

auditor, accounting, financial statements, Centurion ZD CPA & Co., CT International LLP, audit, 8-K, SEC, FingerMotion