Sparta Commercial Services, Inc. (OTCMKTS:SRCO) Files An 8-K Changes in Registrant’s Certifying Accountant

Sparta Commercial Services, Inc. (OTCMKTS:SRCO) Files An 8-K Changes in Registrant’s Certifying Accountant
ITEM 4.01 – CHANGES IN REGISTRANTS' CERTIFYING ACCOUNTANT

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(a) Dismissal of Certifying Accountant

Effective October 31, 2018, Registrant dismissed its independent auditors, RBSM LLP of New York, New York, which action was approved by the Registrants Board of Directors on October 31, 2018.

Except as described in the following sentence, the reports of RBSM LLP on the financial statements of Registrant for the fiscal years ending April 30, 2016 and 2015 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The report of RBSM LLP on the financial statements of Registrant for the fiscal years ended April 30, 2016 and April 30, 2015 do, however, contain an expression of substantial doubt regarding Registrant’s ability to continue as a going concern.

In addition, during Registrant’s fiscal years ended April 30, 2016 and April 30, 2015 and through to the date of dismissal, October 31, 2018, there was no disagreement with RBSM LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

Registrant has requested that RBSM LLP furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the statements in this Item 4.01 within 10 business days of the date of filing this report. A copy of RBSM LLP's letter to the Securities and Exchange Commission is included as an exhibit to this filing.

(b) Engagement of New Certifying Accountant

On October 31, 2018, Boyle CPA, LLC ("Boyle") was engaged as the Registrant’s independent auditors, commencing effective October 31, 2018.

During the two most recent fiscal years and the interim period preceding the engagement of Boyle, Registrant had not consulted with Boyle regarding either:

i.

the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on Registrant’s financial statements, and either a written report or oral advice was provided to the Company by Boyle that Boyle concluded was an important factor considered by the Registrant in reaching a decision as to the accounting, auditing, or financial reporting issue; or

ii.

any matter that was either the subject of a disagreement or event identified in response to paragraph (a) (1) (iv) of Item 304, as those terms are used in Item 304 (a) (1) (iv) of Regulations S-B and S-K and the related instructions to Item 304 of Regulations S-B and S-K.

ITEM 9.01 – FINANCIAL STATEMENTS AND EXHIBITS

(a) Financial Statements of Business Acquired.N/A

(b) Pro forma financial information.N/A

(c) Exhibits.

As described in Item 4.01 of this Report, the following exhibit is filed as part of this Current Report on Form 8-K:


SPARTA COMMERCIAL SERVICES, INC. Exhibit
EX-16.1 2 ex_127221.htm EXHIBIT 16.1 ex_127221.htm       EXHIBIT 16.1   RBSM LLP NEW YORK,…
To view the full exhibit click here

About Sparta Commercial Services, Inc. (OTCMKTS:SRCO)

Sparta Commercial Services, Inc. is a technology company that develops, markets and manages business mobile application for smartphones and tablets. The Company also owns and manages Websites, which sell on-demand motorcycle, recreational vehicle, power-sport vehicle and truck title history reports for consumers, retail dealers, auction houses, insurance companies and banks/finance companies. The Company, on a pass through basis, offers an equipment-leasing product for local and state agencies throughout the country to finance their equipment needs, including police motorcycles and cruisers, buses and emergency medical service (EMS) equipment. The Company, through its subsidiary, iMobile Solutions, Inc. (IMS), formerly Specialty Reports, Inc., offers mobile application development, sales, marketing and support, and Vehicle Title History Reports.

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