ITEM 4.01. CHANGES IN REGISTRANTS CERTIFYING ACCOUNTANT.
On September 26, 2016, China BAK Battery, Inc. (the "Company")
was advised that the Company's independent registered public accounting firm,
Crowe Horwath (HK) CPA Limited (CHHK), will no longer provide audit and
assurances services to public companies subject to the statutes and regulations
of the United States effective as of October 1, 2016. Accordingly, the Company,
with the approval of its audit committee of Board of Directors (the Audit
Committee), dismissed CHHK as its independent registered public accounting
firm, effective September 29, 2016.
CHHKs reports on the financial statements of the Company for
the fiscal years ended September 30, 2015 and 2014 did not contain any adverse
opinion or disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope or accounting principles, except that its report for
each of the fiscal years ended September 30, 2015 and 2014 contained an emphasis
of matter paragraph regarding the Companys ability to continue as a going
concern.
During the Companys fiscal years ended September 30, 2015 and
2014 and through September 29, 2016, there were no disagreements with CHHK on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure which disagreements, if not resolved
to CHHKs satisfaction, would have caused them to make reference to the subject
matter in connection with their report on the Companys consolidated financial
statements for such periods. Furthermore, no reportable events as described in
paragraphs (a)(1)(v)(A)-(D) of Item 304 of Regulation S-K occurred within the
periods covered by CHHKs reports on the Company's consolidated financial
statements, or subsequently up to the date of CHHKs dismissal.
The Company has provided CHHK with a copy of the foregoing
disclosures and has requested that CHHK review such disclosures and provide a
letter addressed to the Securities and Exchange Commission (SEC) stating
whether they agree with the statements made therein. Attached as Exhibit 16.1 is
a copy of CHHKs letter addressed to the SEC relating to the statements made by
the Company in this report on Form 8-K.
On September 29, 2016, concurrent with the dismissal of CHHK,
the Company, upon the approval of the Audit Committee, engaged DCAW (CPA)
Limited (DCAW) as the Companys independent registered public accounting firm,
effective immediately.
The director formerly responsible for the Company's account at
CHHK will join DCAW, and will be the director responsible for the Company's
account at such firm.
During the Companys two most recent fiscal years ended
September 30, 2015 and 2014 and through September 29, 2016, neither the Company
nor anyone on its behalf consulted DCAW regarding (i) the application of
accounting principles to a specified transaction, either completed or proposed;
or on the type of audit opinion that might be rendered on the consolidated
financial statements of the Company, and neither a written report nor oral
advice was provided to the Company that DCAW concluded was an important factor
considered by the Company 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 as defined in Item 304(a)(1)(iv) of Regulation S-K or a
reportable event as described in Item 304(a)(1)(v) of Regulation S-K..