Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 104

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 104
---
 in the Company’s Form 10-K for the fiscal year ended September 30, 2024
previously filed with the SEC.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

As a smaller reporting company,
we are not required to respond to this item.

 48 

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures.

We maintain “disclosure
controls and procedures” as such term is defined in Rule 13a-15I under the Securities Exchange Act of 1934, as amended. 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
quarter ended March 31, 2025, our chief executive officer and our chief financial officer and principal accounting manager, concluded
that our disclosure controls and procedures were not effective such 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;

    ●
    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 March 31, 2025, management
assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control