Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 683

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 683
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ong were vacated by the PCAOB as of December 15, 2022 as a result of the PCAOB’s having been able to conduct extensive and thorough
inspections and investigations of mainland China and Hong Kong firms in 2022 under the SOP; however, if the PCAOB encounters any impediment,
in the future, to conducting an inspection or investigation of auditors in mainland China or Hong Kong as a result of a position taken
by an authority in either jurisdiction, it may issue new determinations consistent with the HFCAA.

Because
our independent registered public accounting firm, J&S Associate PLT (F.K.A: J&S Associate) (“J&S”), is headquartered
in Kuala Lumpur, Malaysia, it would not be subject to any determinations that may be announced by the PCAOB in the future with respect
to auditors located in China or Hong Kong. We believe that the PCAOB’s inspectors and investigators have consistent access to the
audit work performed by J&S for us. Therefore, we do not expect to be affected by the HFCAA at this time.

However,
to the extent that our auditor’s work papers may, in the future, become located in mainland China or in Hong Kong, such work papers
may not be available for inspection by the PCAOB if authorities in the PRC or Hong Kong were to take a position at that time that would
prevent the PCAOB from continuing to inspect or investigate completely registered public accounting firms headquartered in mainland China
or Hong Kong. If such lack of inspection were to extend for the requisite period of time under the HFCAA, and if the PCAOB were then
to issue new determinations based on its inability to inspect or investigate completely registered public accounting firms headquartered
in mainland China or Hong Kong because of a position taken by an authority in those jurisdictions, our shares could be delisted and prohibited
from trading on a U.S. exchange. In addition, if our auditor’s work papers were to become located in China or Hong Kong in the
future, and thereby not be available for PCAOB inspection, our investors would be deprived of the benefits of the PCAOB’s oversight
of our auditor through such inspections, and they may lose confidence in our reported financial information and procedures and the quality
of our financial statements. Also, we cannot assure you that U.S. regulatory authorities will not apply additional or more stringent
criteria to us. Such uncertainty could cause the market price of our shares to be materially and adversely affected.

The
enforcement of the