8-K: Kisses From Italy Inc. Appoints New Independent Auditor Following Dismissal of BF Borgers CPA P.C.

Kisses From Italy Inc. has engaged Victor Mokuolu, CPA PLLC as its new independent auditor, effective May 16, 2024, following the dismissal of BF Borgers CPA P.C.

Summary

• Kisses From Italy Inc. has appointed Victor Mokuolu, CPA PLLC as their new independent registered public accounting firm.
• This appointment is effective as of May 16, 2024.
• The new auditor will be responsible for the fiscal year ending December 31, 2023, and will review the unaudited financial information for the three quarters ending March 31, 2024, June 30, 2024, and September 30, 2024.
• The company previously dismissed BF Borgers CPA P.C. on May 3, 2024.
• There were no prior consultations with Victor Mokuolu regarding accounting principles or audit opinions before their engagement.

Sentiment

Score: 6

Explanation: The change in auditors is a neutral event, but the dismissal of the previous auditor could raise some concerns. The quick appointment of a new auditor is a positive sign.

Positives

• The company has quickly secured a new independent auditor following the dismissal of the previous firm.
• The engagement of Victor Mokuolu ensures the company will have its financial statements audited for the fiscal year ending December 31, 2023.

Risks

• The change in auditors could potentially lead to delays in financial reporting.
• The dismissal of the previous auditor may raise concerns about the company's financial controls or reporting practices.

Future Outlook

The company will proceed with the audit of the fiscal year ending December 31, 2023, and the review of the unaudited financial information for the three subsequent quarters with the newly appointed auditor.

Management Comments

• The Board of Directors unanimously approved the engagement of Victor Mokuolu, CPA PLLC.

Industry Context

The change in auditors is not uncommon, but it is important for companies to maintain continuity and transparency in their financial reporting. The dismissal of BF Borgers CPA P.C. may be related to broader industry scrutiny of smaller audit firms.

Comparison to Industry Standards

• The appointment of a new auditor is a standard procedure when a company dismisses its previous auditor.
• Companies typically aim to engage a reputable firm to ensure the integrity of their financial statements.
• The speed at which Kisses From Italy Inc. appointed a new auditor is within industry norms, as delays can impact investor confidence.

Stakeholder Impact

• Shareholders will be interested in the audit results and the company's financial health.
• The change in auditors may cause some uncertainty among investors.

Next Steps

• Victor Mokuolu will begin the audit of the fiscal year ending December 31, 2023.
• Victor Mokuolu will review the unaudited financial information for the quarters ending March 31, 2024, June 30, 2024, and September 30, 2024.

Key Dates

Keywords

independent auditor, accounting firm, financial statements, audit, Victor Mokuolu, BF Borgers CPA P.C., Kisses From Italy Inc.