Business Context and Reporting Period
This Form 8-K is a current report filed by Orient Paper, Inc. (noted as IT Tech Packaging, Inc. in metadata) on December 1, 2009. The registrant is incorporated in Nevada and maintains principal executive offices in Baoding City, Hebei Province, China. The report discloses a change in the company's independent public accounting firm.
Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit function.
Material Changes
- Resignation of Previous Accountant: Davis Accounting Group P.C. ("Davis") resigned as the registrant's independent public accounting firm effective December 1, 2009.
- Appointment of New Accountant: The Audit Committee approved the appointment of BDO Limited (Hong Kong member firm of BDO International) as the new independent public accounting firm, effective December 1, 2009.
- Scope of New Engagement: BDO is engaged for the fiscal year ending December 31, 2009, and for ongoing review of non-annual quarterly financial statements.
Management Commentary and Risks
Audit History and Disagreements: The registrant confirmed that Davis's audit reports for the fiscal years ended December 31, 2007, and 2008, contained no adverse opinions, disclaimers, or qualifications. There were no disagreements with Davis regarding accounting principles, practices, or auditing scope during the two most recent fiscal years or through the date of this report.
Consultation with New Accountant: The company stated it did not consult with BDO regarding the application of accounting principles or the type of audit opinion prior to engagement. Furthermore, BDO did not provide advice that was a significant factor in the decision to appoint them.
Confirmation: Davis Accounting Group P.C. provided a letter to the SEC agreeing with the registrant's statements regarding the resignation and lack of disagreements.
Key Facts for Investor Verification
- Verify the effective date of the auditor change (December 1, 2009) and the transition timeline for the 2009 fiscal year audit.
- Confirm the qualifications and regulatory standing of the new auditor, BDO Limited, specifically regarding their experience with Chinese manufacturing entities.
- Review the attached Exhibit 16.1 (Letter from Davis Accounting Group) for any additional context not summarized in the main text.
- Monitor future filings (10-K or 10-Q) to ensure the new auditor's report aligns with the clean history reported by the previous auditor.