8-K: Star Alliance International Corp. Changes Auditors, Appoints Bush and Associates

Star Alliance International Corp. has replaced its independent auditor, Greengrowth CPAs, with Bush and Associates, effective August 15, 2024.

Summary

• Star Alliance International Corp. has changed its independent auditor from Greengrowth CPAs to Bush and Associates, effective August 15, 2024.
• Greengrowth CPAs reviewed the company's financial statements for the three quarters ended September 30, 2023, December 31, 2023, and March 31, 2024, but did not audit any fiscal years.
• No audited financial statements were filed with the SEC by Greengrowth CPAs.
• Greengrowth's reviews did not contain any adverse opinions or disclaimers, except for a statement about substantial doubt about the company's ability to continue as a going concern.
• There were no disagreements between the company and Greengrowth on accounting principles, financial statement disclosure, or auditing scope.
• Bush and Associates has been appointed as the new independent registered public accountant firm for the years ending June 30, 2023 and June 30, 2024.
• The company did not consult Bush and Associates on any accounting or auditing matters prior to their appointment.

Sentiment

Score: 3

Explanation: The change in auditors, combined with the lack of audited financials and a going concern statement, creates a negative sentiment.

Positives

• The transition to a new auditor was completed without any reported disagreements on accounting or auditing matters.
• The company has appointed a new auditor, Bush and Associates, to complete the audits for the fiscal years ending June 30, 2023 and 2024.

Negatives

• The previous auditor, Greengrowth CPAs, did not audit any fiscal years, resulting in no audited financial statements being filed with the SEC.
• Greengrowth CPAs expressed substantial doubt about the company's ability to continue as a going concern.

Risks

• The lack of audited financial statements for previous fiscal years could raise concerns among investors.
• The statement about the company's ability to continue as a going concern could negatively impact investor confidence.
• The change in auditors could lead to delays in financial reporting.

Future Outlook

The company will now have Bush and Associates audit the financial statements for the years ending June 30, 2023 and June 30, 2024.

Management Comments

• The board of directors, acting as the audit committee, approved the appointment of Bush and Associates as the company's independent registered public accountant firm.

Industry Context

Changes in auditors are not uncommon, but the lack of audited financial statements and the going concern statement are unusual and could raise concerns in the market.

Comparison to Industry Standards

• It is standard practice for public companies to have their financial statements audited annually by an independent registered public accounting firm.
• The fact that Star Alliance International Corp. did not have any audited financial statements filed with the SEC is unusual and below industry standards.
• The going concern statement from the previous auditor is a significant concern and is not typical for most public companies.

Stakeholder Impact

• Shareholders may be concerned about the lack of audited financial statements and the going concern statement.
• Creditors may be more cautious about lending to the company due to the going concern issue.

Next Steps

• Bush and Associates will audit the financial statements for the years ending June 30, 2023 and June 30, 2024.
• The company will need to address the going concern issue raised by the previous auditor.

Key Dates

Keywords

auditor, accounting, financial statements, Greengrowth CPAs, Bush and Associates, SEC, audit, going concern