Business Context and Reporting Period
This Form 8-K is filed by Command Center, Inc. (not Hirequest, Inc.) on October 14, 2010. The report addresses a change in the company's certifying accountant. The registrant is incorporated in Washington with principal executive offices in Post Falls, ID.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. However, it references historical audit reports indicating a significant financial condition:
- The independent auditor's report for the fiscal year ending December 25, 2009, included an explanatory paragraph noting substantial doubt as to the Company's ability to continue as a going concern.
- Audits for fiscal years ending December 26, 2008, and December 25, 2009, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles, aside from the going concern note.
Material Changes
The primary material change reported is the termination of the auditor-client relationship:
- Previous Accountant: DeCoria, Maichel, and Teague, P.S. ("DM-T") terminated the relationship on September 28, 2010.
- Disagreements: The Company reported no disagreements with DM-T regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the two most recent fiscal years or the interim period through October 4, 2010.
- Consultations: No consultations occurred with DM-T regarding accounting applications or potential audit opinions during the relevant periods.
Guidance, Outlook, and Risks
New Accountant Status: As of October 5, 2010, the Board of Directors/Audit Committee had not yet taken final action to engage a new certifying accountant to replace DM-T.
Risks and Contingencies: The filing highlights the ongoing risk associated with the prior "substantial doubt" regarding the company's ability to continue as a going concern, as noted in the 2009 audit report. The delay in appointing a new auditor may present regulatory or operational risks.
Investor Verification Checklist
- Verify the identity of the new certifying accountant once appointed, as no final action had been taken as of October 5, 2010.
- Review the most recent financial statements to assess the current status of the "going concern" doubt noted in the 2009 audit.
- Confirm the reasons for the auditor termination, despite the company's statement of no disagreements.
- Check subsequent filings for the appointment of a new auditor and any updated financial disclosures.