Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
In connection with its preparation of the Annual Report on Form 10-KSB, on October 2, 2007, the management of TRB Systems International, Inc. (the “Company”) and the Board of Directors concluded that the Company’s financial statements as of and for the quarters ended December 31, 2006 and March 30, 2007 included in the Company's previously filed Quarterly Reports on Form 10-QSB for the fiscal quarters ended December 31, 2006, and March 31, 2007, respectively, should no longer be relied upon and should be restated because above mentioned financial statements have not been reviewed by an independent registered public accountant.
On June 10, 2006, the board of directors of the Company approved the appointment of Chang G. Park, CPA, Ph.D, as our independent registered accountants. On January 16, 2007, Chang G. Park, CPA, Ph.D, resigned on the basis of declining to stand for re-election.
Chang G. Park, CPA, PH.D issued its auditor’s report on the Company’s financial statements for the year ended June 30, 2006. Chang G. Park, CPA, Ph.D’s report dated August 18, 2006 on our financial statements for the most recent fiscal year ended June 30, 2006 did not contain an adverse opinion or disclaimer of opinion, or qualification or modification as to uncertainty, audit scope, or accounting principles, except that it contained a separate paragraph stating:
“The consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company's losses from operations raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.”
On June 29, 2007, the Board of the Directors of the Company engaged Stan J. H. Lee, CPA, registered public accountant, as our principal independent accountant. During the period from January 16, 2007, the date of Chang G. Park, CPA, PH.D’s resignation, to June 29, 2007, the date of the Company’s engagement of Stan J. H. Lee, CPA, as its independent registered accountant, the Company’s interim reports on Form 10-QSBs have not been reviewed by an independent registered public accountant.
The Company is now working with its independent registered public accountant to review its previously filed financial statements as of and for the quarters ended December 31, 2006 and March 30, 2007 included in the Company's previously filed Quarterly Reports on Form 10-QSB for the quarters ended December 31, 2006, and March 31, 2007, respectively. After the completion of those audit reviews, the Company anticipates restating the affected financial statements.
The Company has discussed the disclosures contained in this filing with Stan J. H. Lee, CPA, its independent registered public accountants.