(a) Dismissal of Weinberg & Company, P.A. On August 4, 2010 (the “Dismissal Date”), China INSOnline Corp. (the “Registrant”) notified Weinberg & Company, P.A. (“Weinberg”) that the Registrant was dismissing Weinberg as its independent registered public accounting firm, effective immediately. The Registrant’s Board of Directors approved the dismissal of Weinberg as the Registrant’s independent registered public accounting firm.
Weinberg’s reports on the Registrant’s financial statements for the fiscal years ended June 30, 2009 and 2008 did not contain an adverse opinion or a disclaimer of opinion, nor were such reports qualified or modified as to uncertainty, audit scope or accounting principles.
During the fiscal years ended June 30, 2009 and 2008, and during the subsequent interim period through the Dismissal Date, there were no disagreements between the Registrant and Weinberg on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Weinberg, would have caused Weinberg to make reference to the subject matter of the disagreements in connection with its reports on the Registrant’s financial statements for such periods.
During the fiscal years ended June 30, 2009 and 2008, and during the subsequent interim period through the Dismissal Date, there was one “reportable event,” as defined in Regulation S-K Item 304(a)(1)(v). In performing the audit of the Registrant's consolidated financial statements for the fiscal year ended June 30, 2009, Weinberg advised the Registrant’s management and the Board of Directors that it had identified the following material weakness: there was a lack of sufficient accounting staff which resulted in a lack of effective controls necessary for a good system of internal control for financial reporting and there was a weakness in the internal controls relating to the financial statement closing process which resulted primarily from the fact that certain parts of the work of the Registrant’s accounting staff may not be monitored or reviewed correctly. The material weakness described above continued to exist as of the quarter ended September 30, 2009, December 31, 2009 and March 31, 2010, as reported in the Registrant's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on November 13, 2009, February 16, 2010 and May 27, 2010. For a further discussion of the foregoing material weakness please refer to Item 9A(T) of the Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 2009, filed with the Securities and Exchange Commission on October 13, 2009.
The Registrant has authorized Weinberg to respond fully to the inquires of the Registrant's newly appointed independent registered public accounting firm concerning the subject matter of the material weakness described in this Form 8-K. Other than as disclosed in this Form 8-K, there did not exist any "reportable events" as that term is defined in Item 304(a)(1)(v) during the fiscal years ended June 30, 2009 and 2008, and the interim period through the Dismissal Date.
The Registrant has provided Weinberg with a copy of the above disclosures and requested that Weinberg furnish the Registrant with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the foregoing statements and, if not, stating the respects in which it does not agree. A copy of the letter from Weinberg is filed herewith as Exhibit 16.1.
A red flag if you ask me. The company doesn't pay attention to his shareholders. Months ago I sent a list of questions regarding their business, no answers. What we have to say more..............?