Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 103

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 103
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 are not required to respond to this item.

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 June 30, 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; 

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  ●
  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 June 30, 2025, 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