Business Context and Reporting Period
This Form 6-K filing by Bon Natural Life Ltd, dated October 18, 2022, serves as a Notice of Change of Auditors. The company is a foreign private issuer based in Xi'an, China, and files annual reports under Form 20-F.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This document is a procedural disclosure regarding auditor changes and does not contain financial performance data.
Material Changes
- Auditor Change: On October 13, 2022, the company dismissed Friedman, LLP and engaged YCM CPA, Inc. as its new independent registered public accounting firm.
- Reason for Change: The company stated the decision was not the result of any disagreement on accounting principles, financial statement disclosure, or auditing scope.
Outlook, Risks, and Contingencies
Internal Control Weaknesses: The company disclosed that material weaknesses in internal control over financial reporting, identified as of September 30, 2021, have not been fully remediated as of the date of this report. These weaknesses include:
- A lack of accounting staff and resources with appropriate knowledge of U.S. GAAP and SEC reporting requirements.
- Certain audit adjustments proposed by the auditor and recorded by the company.
- A lack of sufficient documented financial closing policies and procedures.
Disagreements: The company confirmed there were no disagreements with the former accountant regarding accounting principles or auditing procedures during the fiscal years ended September 30, 2021 and 2020, or the subsequent interim period.
Key Facts for Investor Verification
- Verify the remediation status of the material weaknesses in internal controls over financial reporting.
- Confirm the qualifications and independence of the new auditor, YCM CPA, Inc.
- Review the letter from the former auditor (Friedman, LLP) filed as Exhibit 16.1 to ensure no undisclosed disagreements exist.
- Monitor future filings for any impact of the auditor change on the company's financial reporting timeline or audit opinions.