SEC Filing Summary: Information Systems Associates, Inc.
Business Context and Reporting Period
This Form 8-K was filed by Information Systems Associates, Inc. (Registrant) on February 5, 2013, reporting events occurring on January 31, 2013. The filing addresses a change in the company's independent registered public accounting firm.
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 administrative change of auditors.
Material Changes
- Dismissal of Former Auditor: On January 31, 2013, the company dismissed Lake & Associates CPA's LLC.
- Appointment of New Auditor: On January 31, 2013, the company appointed Salberg & Company, P.A. to perform audit services beginning with the fiscal year ending December 31, 2013.
- Audit Committee Approval: Both the dismissal and the new appointment were approved by the Registrant's Audit Committee.
Outlook, Risks, and Contingencies
Going Concern: The former auditor's reports for the years ended December 31, 2011, and December 31, 2010, included an explanatory paragraph relating to the Registrant's ability to continue as a going concern. No adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles were issued.
Disagreements and Reportable Events: The Registrant stated there were no disagreements with the former auditor on accounting principles, practices, or auditing scope/procedures, nor were there any "reportable events" during the fiscal years 2010 and 2011 or through January 30, 2013.
Consultation with New Auditor: The Registrant confirmed that no consultations occurred with the new auditor (Salberg) regarding accounting principles or reportable events prior to their appointment.
Investor Verification Checklist
- Verify the content of the Former Auditor's letter (Exhibit 16.1) to confirm their agreement with the disclosures regarding the dismissal.
- Review the most recent financial statements to assess the severity of the "going concern" explanatory paragraph noted in prior audits.
- Confirm the transition timeline for Salberg & Company, P.A. to ensure no gaps in audit coverage for the 2013 fiscal year.
- Check for any subsequent filings that might detail the reasons for the auditor change beyond the standard regulatory disclosures.