01—Abstract
Summary
Summary of the 8-K/A filed July 21, 2010. Cited figures are marked; the original filing is the authoritative source.
Byrn, Inc. (BRRN) announced a change in its independent registered public accounting firm, dismissing Seale and Beers, CPAs, and engaging RR Hawkins & Associates International, PSC, effective July 14, 2010.
This change appears to be a strategic move following the company's acquisition of ZenZuu USA, Inc. on February 10, 2010, as RR Hawkins was the certifying accountant for ZenZuu USA, Inc. This allows for a more integrated accounting approach post-acquisition. Importantly, the company stated that there were no disagreements with the former auditors, Seale and Beers, CPAs, regarding accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years, the most recent nine-month period, or as of the dismissal date.
Seale and Beers, CPAs did not report any reportable events. While the auditor reports from Seale and Beers, CPAs for the years ended April 30, 2009 and 2008 did not contain adverse opinions or qualifications, they did include a "going concern" paragraph, which investors should note.
02—Key points
Key Highlights
- Byrn, Inc. is changing its independent auditor from Seale and Beers, CPAs to RR Hawkins & Associates International, PSC.
- The change in auditors is effective July 14, 2010.
- The primary driver for the change appears to be the recent acquisition of ZenZuu USA, Inc., whose auditors were RR Hawkins & Associates.
- There were no disagreements with the former auditor (Seale and Beers, CPAs) on accounting or auditing matters.
- The former auditor did not report any 'reportable events.'
- The audit reports for fiscal years 2008 and 2009 from Seale and Beers, CPAs contained a 'going concern' paragraph.
- The company did not consult with the new auditor (RR Hawkins) prior to their engagement regarding any accounting or auditing issues.
03—Questions
Frequently Asked Questions
Why did Byrn, Inc. change its independent auditor?
Byrn, Inc. changed its independent auditor from Seale and Beers, CPAs to RR Hawkins & Associates International, PSC, primarily due to the company's acquisition of ZenZuu USA, Inc. RR Hawkins & Associates International, PSC was the certifying accountant for ZenZuu USA, Inc., suggesting a move towards accounting integration post-acquisition.
Were there any issues or disagreements with the previous auditor, Seale and Beers, CPAs?
No, the filing explicitly states that there were no disagreements with Seale and Beers, CPAs on any matter of accounting principles, practices, financial statement disclosure, or auditing scope or procedure. Furthermore, Seale and Beers, CPAs did not advise the company of any reportable events.
What is the significance of the 'going concern' paragraph in the previous auditor's report?
A 'going concern' paragraph in an auditor's report indicates that there may be substantial doubt about the company's ability to continue as a going concern for a reasonable period. Investors should pay close attention to this as it suggests potential financial instability or challenges that the company faces.
Did the company consult with the new auditor before hiring them?
No, according to the filing, Byrn, Inc. did not consult with RR Hawkins & Associates International, PSC prior to their engagement regarding any accounting, auditing, or financial issues related to the matters covered by Regulation S-K.
04—Continue