ITEM 4.01 CHANGE IN COMPANY’S CERTIFYING ACCOUNTANT
On December 03, 2016, the audit committee of ERHC Energy
, Inc
., (the “Company”) approved the disengagement of MaloneBailey, LLP (“MB”) as the registered independent public accountant and the appointment of M&K CPAS, PLLC (“M&K”) as the Company’s registered independent public accounting firm as of December 04, 2016. The audit committee acted on the recommendation of the Company’s management after the Company failed to reach an agreement with MB on remuneration payable for MB continuing to act as the Company’s independent registered public accountant. The Company has been cutting expenditure across its operations in view of current economic conditions.
Other than the disclosure of uncertainty regarding the ability for us to continue as a going concern which was included in our accountant’s report on the amended financial statement filed May 10, 2016 for the years ending September 30, 2014 and September 30, 2015, MB’s reports on the financial statements of the Company for the years ending September 30, 2014 and September 30, 2015 did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.
In connection with the audit and review of the financial statements of the Company through June 30, 2016, there were no disagreements on any matter of accounting principles or practices, financial statement disclosures, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with MB’s opinion to the subject matter of the disagreement.
In connection with the audited financial statements of the Company for the years ending September 30, 2014 and September 30, 2015, and interim unaudited financial statements through June 30, 2016, there have been no reportable events with the Company as set forth in Item 304(a)(1)(v) of Regulation S-K.
Prior to September 2016, the Company did not consult with M&K regarding (1) the application of accounting principles to specified transactions, (2) the type of audit opinion that might be rendered on the Company’s financial statements, (3) written or oral advice was provided that would be an important factor considered by the Company in reaching a decision as to an accounting, auditing or financial reporting issues, or (4) any matter that was the subject of a disagreement between the Company and its predecessor auditor as described in Item 304(a)(1)(iv) or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K.
The Company provided a copy of the foregoing disclosures to MB prior to the date of the filing of this report and requested that MB furnish it with a letter addressed to the Securities & Exchange Commission stating whether or not it agrees with the statements in this Report. A copy of the letter furnished in response to that request is filed as Exhibit 16.1 to this Form 8-K.