8-K: International Land Alliance Changes Accounting Firms, M&K CPAS Disengaged

International Land Alliance, Inc. has changed its independent registered public accounting firm from M&K CPAS, PLLC to Bush & Associates CPA, effective immediately for the fiscal year ended December 31, 2023.

Summary

• International Land Alliance, Inc. (the Company) has replaced its independent registered public accounting firm, M&K CPAS, PLLC, with Bush & Associates CPA.
• The change was effective immediately on April 17, 2024, for the fiscal year ending December 31, 2023.
• M&K CPAS's audit report for the fiscal year ended December 31, 2022, did not contain any adverse opinions or disclaimers, but included an explanatory paragraph about the company's ability to continue as a going concern.
• There were no disagreements between the Company and M&K on accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2022, and subsequent interim periods through April 24, 2024.
• M&K has provided a letter to the SEC confirming their agreement with the statements made by the Company regarding their disengagement.

Sentiment

Score: 5

Explanation: The change in auditors is neutral, but the going concern note in the previous audit report is a concern. The lack of disagreements is a positive, but the overall sentiment is slightly cautious.

Positives

• The transition to a new auditor was completed without any reported disagreements on accounting or auditing matters.
• M&K CPAS has confirmed the accuracy of the statements made by International Land Alliance regarding their disengagement.

Negatives

• M&K's audit report for 2022 included an explanatory paragraph about the company's ability to continue as a going concern, which could raise concerns about the company's financial stability.

Risks

• The change in auditors could potentially lead to increased scrutiny of the company's financial statements.
• The going concern note in the previous audit report may indicate underlying financial challenges for the company.

Management Comments

• The Company and its management team, thank M&K and all its employees for the years of service provided.

Industry Context

Changes in auditors are not uncommon, but the circumstances surrounding the change, such as the going concern note, can be a point of interest for investors and regulators. It is important to monitor the new auditor's reports for any changes in opinion or findings.

Comparison to Industry Standards

• The change of auditors is a common event, but the presence of a 'going concern' note in the previous audit is not typical and may raise concerns.
• Companies like International Land Alliance, which are smaller and may have more volatile financials, are more likely to have going concern issues than larger, more established companies.
• It is important to compare the new auditor's reports with those of similar companies in the same industry to assess the financial health of International Land Alliance.

Stakeholder Impact

• Shareholders may be concerned about the going concern note in the previous audit report.
• The change in auditors could lead to increased scrutiny of the company's financial statements by regulators and investors.

Next Steps

• The company will need to work with Bush & Associates CPA to complete the audit for the fiscal year ended December 31, 2023.
• Investors should monitor the new auditor's reports for any changes in opinion or findings.

Key Dates

Keywords

auditor, accounting firm, M&K CPAS, Bush & Associates CPA, financial statements, going concern, audit, disengagement