Business Context and Reporting Period
This Form 8-K is a current report filed by Steampunk Wizards, Inc. (formerly Freedom Petroleum, Inc.) on November 13, 2015. The filing discloses a change in the company's independent registered public accounting firm. The company is incorporated in Nevada and maintains its principal executive offices in West Los Angeles, California.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the transition of the external auditor.
Material Changes Versus Prior Period
- Accountant Change: The company replaced Green & Company CPA's with RBSM LLP as its independent registered public accounting firm.
- Scope of Work: RBSM was engaged to audit financial statements for the fiscal year ended July 31, 2016, succeeding Green, who audited the fiscal year ended July 31, 2015.
- Audit Opinion Status: Green's audit report for the fiscal year ended July 31, 2015, included a going concern qualification. There were no other adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: The company reported no disagreements with Green regarding accounting principles, financial statement disclosure, or auditing scope/procedures for the two most recent fiscal years and subsequent interim periods.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the disclosed going concern qualification in the prior audit. The company confirmed that Green did not advise that internal controls were insufficient or that they were unwilling to rely on management's representations.
Important Facts for Investor Verification
- Verify the specific reasons for the going concern qualification noted in the 2015 Form 10-K audited by Green & Company CPA's.
- Confirm the engagement terms and scope of the new auditor, RBSM LLP, for the fiscal year ending July 31, 2016.
- Review the letter from Green & Company CPA's (filed as Exhibit 16.1) to ensure no undisclosed disagreements or issues exist.
- Monitor the company's ability to resolve the going concern issues identified in the previous fiscal year.