Business Context and Reporting Period
This Form 8-K is a current report filed by Flexible Solutions International Inc. on November 14, 2024 (with a signature date of December 2, 2024). 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. This report focuses exclusively on corporate governance regarding the audit function.
Material Changes
- Resignation of Auditor: Smythe LLP, Chartered Professional Accountants, resigned as the independent registered public accounting firm on November 14, 2024. The resignation was due to Smythe's decision to discontinue auditing public entities.
- Engagement of New Auditor: Assure CPA, LLC of Spokane, WA, was engaged on November 23, 2024, to serve as the new auditors starting with the fiscal year ending December 2024.
- Audit History: Reports for fiscal years ended December 31, 2023, and 2022 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements or reportable events with the former auditor during the relevant periods.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, management outlook, or specific risk factors beyond the operational change of the audit firm. The company confirmed that no consultations regarding accounting principles or audit opinions occurred with the new auditor prior to engagement.
Investor Verification Checklist
- Verify the transition timeline between Smythe LLP and Assure CPA, LLC to ensure no gap in audit coverage.
- Review the letter from Smythe LLP (Exhibit 16) to confirm their agreement with the company's statements regarding the resignation.
- Monitor future filings for the first audit report issued by Assure CPA, LLC for the fiscal year ending December 2024.
- Confirm that the change in auditor does not signal underlying financial distress, given the stated reason was the former firm's strategic exit from public entity auditing.