Business Context and Reporting Period
This Form 8-K is a current report filed by China BAK Battery, Inc. (CBAK Energy Technology, Inc.) on September 29, 2016. The filing addresses a change in the registrant's certifying accountant.
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 transition of the independent registered public accounting firm.
Material Changes
- Dismissal of Auditor: The Company dismissed Crowe Horwath (HK) CPA Limited ("CHHK") effective September 29, 2016. CHHK ceased providing audit services to U.S. public companies effective October 1, 2016.
- Engagement of New Auditor: Concurrent with the dismissal, the Company engaged DCAW (CPA) Limited ("DCAW") as its new independent registered public accounting firm, effective immediately.
- Continuity: The director formerly responsible for the Company's account at CHHK will join DCAW and serve as the director responsible for the account at the new firm.
Management Commentary, Risks, and Contingencies
- Going Concern Emphasis: CHHK's reports for the fiscal years ended September 30, 2015, and 2014, contained an emphasis of matter paragraph regarding the Company's ability to continue as a going concern. No adverse opinions, disclaimers, or qualifications were issued.
- No Disagreements: The Company reported no disagreements with CHHK regarding accounting principles, practices, financial statement disclosures, or auditing scope during the two most recent fiscal years or through the date of dismissal.
- No Reportable Events: No reportable events as defined in Item 304 of Regulation S-K occurred during the periods covered by CHHK's reports or subsequently up to the dismissal date.
- Consultation with New Auditor: The Company confirmed no consultations with DCAW regarding accounting principles or audit opinions prior to engagement.
Investor Verification Checklist
- Verify the status of the "going concern" emphasis noted in prior audits and any subsequent financial developments.
- Confirm the transition timeline and any potential delays in the audit of the fiscal year ending September 30, 2016.
- Review the letter from CHHK (Exhibit 16.1) to ensure the auditor agrees with the Company's statements regarding the dismissal.
- Monitor future filings for the first audit report issued by DCAW (CPA) Limited.