Business Context and Reporting Period
This Form 8-K Current Report was filed by iQSTEL Inc. on June 18, 2020. The filing primarily addresses a change in the company's independent registered public accounting firm and discloses specific reportable events regarding internal controls.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. The document focuses on accounting governance rather than operational financial results.
Material Changes
- Accountant Resignation: Boyle CPA, LLC resigned as the independent registered public accounting firm effective June 18, 2020.
- New Appointment: Urish Popeck & Co., LLC was engaged as the new independent registered public accounting firm on June 18, 2020, approved by the Board of Directors.
- Going Concern Uncertainty: The former accountant's audit reports for the years ended December 31, 2019, and 2018, included an uncertainty regarding the company's ability to continue as a going concern.
Outlook, Risks, and Contingencies
- Internal Control Deficiencies: Management determined that internal controls over financial reporting were not effective as of December 31, 2019. As of the date of this report (June 18, 2020), these controls have not been remediated.
- Disagreements: There were no disagreements with the former accountant regarding accounting principles, practices, or auditing scope for the periods ended December 31, 2019, and 2018, or through June 18, 2020.
- Consultations: The company did not consult with the new accountant regarding accounting principles or matters that were the subject of disagreements or reportable events prior to their engagement.
Investor Verification Checklist
- Verify the status of the remediation plan for ineffective internal controls over financial reporting.
- Review the letter from Boyle CPA, LLC (Exhibit 16.1) to confirm their stance on the disclosures regarding their resignation.
- Assess the company's current liquidity position given the previously disclosed "going concern" uncertainty.
- Confirm the timeline for the new auditor's initial review or audit of the company's financial statements.