Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 734

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 734
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13a-15I under the Exchange Act. In designing
and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how
well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures
are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment
in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and
procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all potential future conditions. Based on their evaluation as of the end of the
fiscal year ended September 30, 2024, our chief executive officer and our chief financial officer and principal accounting manager concluded
that our disclosure controls and procedures were not effective in insuring that the information relating to our Company required to be
disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized, and reported within the time periods
specified in SEC rules and forms; and (ii) is accumulated and communicated to our management, including our chief executive officer,
to allow timely decisions regarding required disclosure as a result of the material weaknesses in our internal control over financial
reporting due to the existence of the following material weaknesses:

    ●
    A
    lack of sufficient and adequately trained internal accounting and finance personnel with appropriate understanding of U.S. GAAP and
    SEC reporting requirements;

    ●
    A
    lack of segregation of duties within significant accounts; and

    ●
    A
    lack of a functioning audit committee and a majority of outside directors on the Company’s Board of Directors.

Management’s
Report on Internal Control over Financial Reporting

As
of September 30, 2024, management assessed the effectiveness of our internal control over financial reporting based on the criteria for
effective internal control over financial reporting established in the 2013 updated Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments.
Based on that evaluation, management concluded that, during the period covered by this report, such internal controls and procedures
were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies
that existed in the design or operation of our internal controls over