Precious Investments, Inc. (OTCMKTS:PNIK) Files An 8-K Changes in Registrant’s Certifying AccountantItem 4.01 Changes in Registrant’s Certifying Accountant.
On March 9, 2017, Seale & Beers, CPAs, (the “Former Accountant”) informed the Company that the Former Accountant was in the process of being acquired by AMC Auditing, LLC. As a result of the acquisition, on April 24, 2017, the Former Accountant resigned as the Company’s independent registered public accounting firm and the Company engaged AMC Auditing, LLC (the “New Accountant”) as the Company’s independent registered public accounting firm. The engagement of the New Accountant was approved by the Company’s Board of Directors.
The Former Accountant’s audit report on the financial statements of the Company for the year ended July 31, 2016 contained no adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit report on the financial statements of the Company for the year ended July 31, 2016 contained an uncertainty about the Company’s ability to continue as a going concern.
For the year ended July 31, 2016, and through the interim period ended April 24, 2017, there were no “disagreements” (as such term is defined in Item 304 of Regulation S-K) with the Former Accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to the satisfaction of the Former Accountant would have caused them to make reference thereto in their reports on the financial statements for such periods.
For the years ended July 31, 2016, and through the interim period ended April 24, 2017, there were the following “reportable events” (as such term is defined in Item 304 of Regulation S-K). As disclosed in Part II, Item 9A of the Company’s Form 10-K for the year ended July 31, 2016, the Company’s management determined that the Company’s internal controls over financial reporting were not effective as of the end of such period.
The Company’s internal controls have not been remediated as of the date of this Current Report on Form 8-K.
Other than as disclosed above, there were no reportable events for the years ended July 31, 2016, and through the interim period ended April 24, 2017. The Company’s Board of Directors discussed the subject matter of each reportable event with the Former Accountant. The Company authorized the Former Accountant to respond fully and without limitation to all requests of the New Accountant concerning all matters related to the audited period by the Former Accountant, including with respect to the subject matter of each reportable event.
Prior to retaining the New Accountant, the Company did not consult with the New Accountant regarding either: (i) the application of accounting principles to a specified transaction, either contemplated or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements; or (ii) any matter that was the subject of a “disagreement” or a “reportable event” (as those terms are defined in Item 304 of Regulation S-K).
On September 28, 2017, the Securities and Exchange Commission (the “Commission”) informed us that the PCAOB revoked the registration of the Former Accountant. As a result, we may no longer include audit reports or consents of the Former Accountant in our filings with the Commission on or after the date of deregistration.
On October 2, 2017, the Company provided the Former Accountant with its disclosures in the Current Report on Form 8-K disclosing the dismissal of the Former Accountant and requested in writing that the Former Accountant furnish the Company with a letter addressed to the Commission stating whether or not they agree with such disclosures. The Former Accountant’s response is filed as an exhibit to this Current Report on Form 8-K.
SECTION 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
Precious Investments, Inc. ExhibitEX-16.1 2 ex16_1.htm Mail Stop: 3561 September 28,…To view the full exhibit click
About Precious Investments, Inc. (OTCMKTS:PNIK)
Precious Investments, Inc. is engaged in the business of purchasing and selling colored diamonds. The Company focuses on managing a portfolio of rare colored diamonds. The Company focuses on manufacturing and wholesaling of fine jewelry. The Company also focuses on wholesaling of fine pre-owned vintage watches and buying of jewelry, watches and diamonds. The Company was an exploration-stage company with the principle business being the acquisition and exploration of resource properties. As of April 30, 2016, the Company had not generated any revenue.