Business Context and Reporting Period
This Form 6-K filing by CLPS Inc. (CLPS Incorporation) covers the month of December 2018. The report was signed by the Chief Executive Officer on January 7, 2018, though the content pertains to events occurring in late December 2018. The registrant is a foreign private issuer based in Shanghai, People's Republic of China.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance and auditor changes rather than financial performance data.
Material Changes
- Dismissal of Auditor: On December 21, 2018, Friedman LLP was dismissed as the independent registered public accounting firm, effective immediately.
- Appointment of Successor: On December 21, 2018, Ernst & Young Hua Ming LLP ("EY") was appointed as the successor auditor, approved by the chair of the Audit Committee.
- Audit History: Friedman's prior reports did not contain adverse opinions, disclaimers, or qualifications. There were no disagreements regarding accounting principles, financial statement disclosure, or auditing scope during the period.
- Consultation History: The Company did not consult EY regarding accounting principles or audit opinions during the two most recent fiscal years or through the date of this report.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on business operations. The primary risk disclosed relates to the change in independent auditors, though the filing explicitly states there were no reportable events or disagreements precipitating the change.
Investor Verification Checklist
- Verify the reasons for the dismissal of Friedman LLP beyond the stated lack of disagreement.
- Confirm the transition timeline and scope of work for the new auditor, Ernst & Young Hua Ming LLP.
- Review the letter from Friedman LLP (Exhibit 16.1) to ensure it aligns with the Company's statements regarding the dismissal.
- Check subsequent filings for the first financial statements audited by EY to assess any changes in accounting treatment.