Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 149

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 149
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 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 financial reporting that adversely affected our internal controls
and that are considered to be material weaknesses as described herein above. A material weakness is a deficiency, or a combination of
deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Notwithstanding
the existence of these material weaknesses in our internal control over financial reporting, our management believes that the financial
statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations,
and cash flows for the periods presented. We continue to evaluate the effectiveness of internal controls and procedures on an on-going
basis. Once our cash position improves, we plan to hire an experienced controller and work to build an internal accounting team with
sufficient in-house expertise in US GAAP reporting. However, due to our current limited cash flow, we cannot assure you when we will
be able to implement those remediation methods.

Because
we are an emerging growth company, this Annual Report does not include an attestation report of our independent registered public accounting
firm regarding internal control over financial reporting.

96

(b)
Changes in internal controls over financial reporting

There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) during the fourth fiscal quarter of the fiscal year ended September 30, 2024, covered by this report that has materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting other than the facts disclosed
above.

ITEM
9B. OTHER INFORMATION

None.

Part
III

ITEM
10