Business Context and Reporting Period
This Form 8-K Current Report was filed by China BAK Battery, Inc. (CBAK Energy Technology, Inc.) on January 8, 2013, regarding events occurring on January 2, 2013. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document notes that the Company's financial statements for the fiscal years ended September 30, 2012, and 2011, contained an "emphasis of matter" paragraph regarding the Company's ability to continue as a going concern.
Material Changes
- Accountant Resignation: PKF, Certified Public Accountants, Hong Kong, China, resigned as the Company's independent registered public accounting firm effective immediately on January 2, 2013.
- Audit Committee Action: The Audit Committee accepted the resignation.
- Disagreements: There were no disagreements with PKF regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years or the interim period through January 2, 2013.
- Opinion Status: PKF's reports for the fiscal years ended September 30, 2012, and 2011, did not contain an adverse opinion, disclaimer, or qualification, aside from the going concern emphasis.
Guidance, Outlook, and Risks
The Company is currently in the process of selecting a new independent registered public accounting firm. No new firm has been retained as of the filing date. The Company intends to file a subsequent Form 8-K once the selection is made. The primary risk highlighted is the ongoing uncertainty regarding the Company's ability to continue as a going concern, as previously noted by the departing auditor.
Investor Verification Checklist
- Verify the identity and qualifications of the new independent registered public accounting firm once announced.
- Review the specific details of the "emphasis of matter" paragraph regarding the going concern status in the most recent audited financial statements.
- Monitor subsequent filings for the timeline of the new auditor's engagement and any potential delays in future financial reporting.
- Confirm that no undisclosed disagreements existed between management and the former auditor regarding financial reporting.