8-K: Rego Payment Architectures Changes Auditors as Morison Cogen Exits Public Company Audits

Rego Payment Architectures has changed its independent auditor from Morison Cogen LLP to Stephano Slack LLC, effective October 1, 2024, following Morison Cogen's decision to cease auditing public companies.

Summary

• Rego Payment Architectures, Inc. has announced the resignation of its independent registered public accounting firm, Morison Cogen LLP, effective September 30, 2024.
• Morison Cogen's resignation is due to their exit from providing audit services to publicly traded companies.
• Morison Cogen's audit reports for the fiscal years ended December 31, 2023 and 2022 did not contain any adverse opinions or modifications, except for expressing substantial doubt about the company's ability to continue as a going concern.
• There were no disagreements or reportable events between Rego Payment Architectures and Morison Cogen during the fiscal years ended December 31, 2023 and 2022 and the subsequent interim period through September 30, 2024.
• Rego Payment Architectures has engaged Stephano Slack LLC as its new independent registered public accounting firm, effective October 1, 2024.
• The company did not consult with Stephano Slack LLC on any accounting or auditing matters prior to their engagement.

Sentiment

Score: 5

Explanation: The change in auditors is neutral, but the previous auditor's going concern warning is a negative factor.

Positives

• The transition to a new auditor, Stephano Slack LLC, was completed quickly, with the engagement effective October 1, 2024.
• Morison Cogen confirmed that there were no disagreements or reportable events during their tenure as auditor.

Negatives

• Morison Cogen's audit reports for 2023 and 2022 expressed substantial doubt about Rego Payment Architectures' ability to continue as a going concern due to losses from development activities.

Risks

• The change in auditors could potentially introduce some uncertainty in the short term.
• The previous auditor's concerns about the company's ability to continue as a going concern remain a risk.

Future Outlook

The company will be working with Stephano Slack LLC for the audit of the fiscal year ending December 31, 2024.

Industry Context

Auditor changes are not uncommon, but the reason for the change, Morison Cogen exiting public company audits, is unusual. This may reflect broader trends in the accounting industry.

Comparison to Industry Standards

• The change of auditors is a standard process, but the reason for the change is not typical.
• The fact that the previous auditor expressed doubt about the company's ability to continue as a going concern is a significant concern and is not typical for companies with stable financial positions.
• It is common for companies to engage a new auditor after a resignation, and the engagement of Stephano Slack LLC is in line with standard practice.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the previous auditor's going concern warning.
• The company will need to work closely with the new auditor to ensure a smooth audit process.

Next Steps

• Stephano Slack LLC will conduct the audit for the fiscal year ending December 31, 2024.

Key Dates

Keywords

auditor, accounting, Morison Cogen, Stephano Slack, financial statements, audit, going concern