Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 511

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 511
---
 ability to enforce our agreements.

65

To
the extent that our independent registered public accounting firm’s audit documentation related to their audit reports for the
Company may, in the future, be located in China or in Hong Kong, our securities could be delisted and prohibited from trading on a U.S.
exchange.

The
Holding Foreign Companies Accountable Act (the “HFCAA”), as originally passed, prohibited foreign companies from listing
their securities on U.S. exchanges if the company’s auditor has been unavailable for PCAOB inspection or investigation for three
consecutive years beginning in 2021. On December 29, 2022, as part of the Consolidated Appropriations Act, 2023, the time period for
the delisting of foreign companies under the HFCAA was reduced from three consecutive years to two consecutive years.

On
December 16, 2021, the PCAOB issued the Determination Report, which found that the PCAOB is unable to inspect or investigate completely
registered public accounting firms headquartered in (i) mainland China of the People’s Republic of China because of a position
taken by one or more authorities in mainland China; and (ii) Hong Kong, a Special Administrative Region and dependency of the PRC, because
of a position taken by one or more authorities in Hong Kong. In addition, the Determination Report identified specific registered public
accounting firms subject to these determinations.

On
August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance
of the PRC (the “SOP”). Pursuant to the SOP, the PCAOB has independent discretion to select any issuer audits for inspection
or investigation and has the unfettered ability to transfer information to the SEC. The determinations as to mainland China and Hong
Kong 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