ATPC

Business Context and Reporting Period

Company: Agape ATP Corp (ATPC)
Filing Type: Form 8-K (Current Report)
Date of Report: April 25, 2024
Reporting Period: The filing addresses events occurring on April 24, 2024, and April 25, 2024, regarding the dismissal of the independent registered public accounting firm and the engagement of a new firm.

Key Financial Metrics

This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly a disclosure of corporate governance changes regarding the external auditor.

Material Changes Versus Prior Period

• Dismissal of Auditor: The Board of Directors resolved to dismiss Marcum Asia CPAs LLP ("Marcum Asia") effective April 25, 2024. Marcum Asia had served as the independent accountant since October 20, 2022, and audited financial statements for the years ended December 31, 2022, and 2023.
• Engagement of New Auditor: The Company engaged Assentsure PAC ("Assentsure") as the new independent registered public accounting firm, effective April 29, 2024.
• Audit History: Marcum Asia issued no adverse opinions or qualifications during its tenure. However, the filing discloses material weaknesses identified during the engagement related to insufficient accounting personnel and a lack of a functional internal audit department.

Guidance, Outlook, Risks, and Contingencies

Management Commentary and Risks: The filing highlights specific internal control deficiencies that were identified during the tenure of the former auditor:

• Insufficient full-time personnel with appropriate accounting knowledge to monitor daily transactions and address complex U.S. GAAP issues.
• Lack of a functional internal audit department to monitor preventive internal control procedures.
• Absence of adequate policies and procedures within the internal audit function.

No forward-looking guidance, financial outlook, or unusual items regarding operations were disclosed in this report.

Important Facts for Investor Verification

• Verify the reasons for the dismissal of Marcum Asia CPAs LLP beyond the stated material weaknesses.
• Confirm the timeline for Assentsure PAC to complete the audit of the most recent fiscal year and issue an opinion.
• Review the attached letter from Marcum Asia (Exhibit 16.1) for any additional context regarding the dismissal.
• Assess the Company's plan to remediate the identified material weaknesses in internal controls over financial reporting.