15-Jul-2011
Changes in Registrant's Certifying Accountant
Item 4.01 Changes in Registrant's Certifying Accountant.
(a) Previous independent registered public accounting firm
On April 11, 2011, the Board of Directors of Huifeng Bio-Pharmaceutical Technology, Inc. (the "Registrant" or the "Company") entered the decision to dismiss Baker Tilly Hong Kong Limited ("BTHK") as the Company's independent registered public accounting firm. The dismissal of BTHK was primarily due to Company's dissatisfaction with BTHK's services (the "Dismissal").
On April 15, 2011, BTHK directed its resignation letter as the Company's auditors and ceased its services as the Company's accountants to the Company's Board of Directors. In such letter, BTHK stated a number of accounting matters, which principally related to: accounting for revenue, goodwill and financial instruments, completeness and consistency of accounting documentation, effectiveness of internal control system, possibility of materials errors or fraud, which would have prevented BTHK from rendering an unqualified opinion if these issues were not resolved. In addition, BTHK stated that they were no longer able to place reliance on management representations in relation to prior period financial reports. BTHK's audit report on the Company's 2009 financial statements did not contain any adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.
On April 28, 2011, BTHK submitted a letter to the Company and stated in such letter that:
"in the course of conducting our audit of the Company's financial statements, we have become aware of information indicating that an inappropriate act may have occurred. We therefore concluded:
* the inappropriate act has a material effect on the financial statements of the issuer;
* senior management of the Company has not taken, and the Board of Directors of the Company has not caused senior management of the Company to take, timely and appropriate remedial actions with respect to this act; and
* the failure to take remedial action warranted our resignation from the audit engagement."
The Company has started an investigation into the matters raised by BTHK's letter. The Company is unable to determine the full effect of these matters, including whether any restatement of its historical financial statements will be required, until the investigation is completed.
The Company provided BTHK with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission and requested that BTHK furnish a letter addressed to the Commission stating whether or not BTHK agrees with the statements noted above.
A copy of such letter responding to that request, dated July 15, 2011, are attached as Exhibit 16.1 to this Current Report on Form 8-K.
(b) Engagement of independent registered public accounting firm
As of the date of this current report on Form 8-K, the Company is still in the search for a new independent registered public accounting firm.
On April 11, 2011, the Board of Directors of Huifeng Bio-Pharmaceutical Technology, Inc. (the "Registrant" or the "Company") entered the decision to dismiss Baker Tilly Hong Kong Limited ("BTHK") as the Company's independent registered public accounting firm. The dismissal of BTHK was primarily due to Company's dissatisfaction with BTHK's services (the "Dismissal").
On April 15, 2011, BTHK directed its resignation letter as the Company's auditors and ceased its services as the Company's accountants to the Company's Board of Directors. In such letter, BTHK stated a number of accounting matters, which principally related to: accounting for revenue, goodwill and financial instruments, completeness and consistency of accounting documentation, effectiveness of internal control system, possibility of materials errors or fraud, which would have prevented BTHK from rendering an unqualified opinion if these issues were not resolved. In addition, BTHK stated that they were no longer able to place reliance on management representations in relation to prior period financial reports. BTHK's audit report on the Company's 2009 financial statements did not contain any adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.
On April 28, 2011, BTHK submitted a letter to the Company and stated in such letter that:
"in the course of conducting our audit of the Company's financial statements, we have become aware of information indicating that an inappropriate act may have occurred. We therefore concluded:
* the inappropriate act has a material effect on the financial statements of the issuer;
* senior management of the Company has not taken, and the Board of Directors of the Company has not caused senior management of the Company to take, timely and appropriate remedial actions with respect to this act; and
* the failure to take remedial action warranted our resignation from the audit engagement."
The Company has started an investigation into the matters raised by BTHK's letter. The Company is unable to determine the full effect of these matters, including whether any restatement of its historical financial statements will be required, until the investigation is completed.
The Company provided BTHK with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission and requested that BTHK furnish a letter addressed to the Commission stating whether or not BTHK agrees with the statements noted above.
A copy of such letter responding to that request, dated July 15, 2011, are attached as Exhibit 16.1 to this Current Report on Form 8-K.
(b) Engagement of independent registered public accounting firm
As of the date of this current report on Form 8-K, the Company is still in the search for a new independent registered public accounting firm.
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