Item 4.01 Changes in Registrant's Certifying Accountant.
(a) Previous Independent Accountants
On June 1, 2017, the Board of Directors of Sichuan Leaders Petrochemical Company (the “Company”) approved the withdrawal of Stevenson & Company CPAS LLC (Stevenson’s) as the Company’s independent registered public accounting firm, effective as of June 1, 2017.
During the twelve month period ended December 31, 2015 and December 31, 2014, the reports of Stevenson & Company on the Company’s financial statements did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. There were no disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K) with Stevenson on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved, would have caused Stevenson to make reference to the subject matter of the disagreements in its reports. However, Stevenson’s report for the fiscal years ended December 31, 2015, and December 31, 2014, respectively, included an explanatory paragraph noting the Company has significant net losses and cash flow deficiencies. With the limited resources, and recurring losses from operations and the Company’s need to raise additional capital, all of these factors continue to raise substantial doubt about the Company’s ability to continue as a going concern.
During the audit periods mentioned above, and the subsequent interim period through June 1, 2017, there were no reportable events (as defined in Item 304(a)(1) (v) of Regulation S-K). However, as disclosed in Item 9A. Controls and Procedures of Form 10-K filed March 1, 2016, management has concluded that our internal controls had material weaknesses and our disclosure controls and procedures remain not effective.
The Company has provided Stevenson with a copy of this report and Stevenson has furnished the Company with a letter addressed to the Securities and Exchange Commission indicating they agree with the statements made above. A copy of Stevenson’s letter dated June 1, 2017 is attached as Exhibit 16.1 to this report.
(b) New Independent Accountants
On June 1, 2017, the Board of Directors of the Company approved the engagement of MaloneBailey, LLP as the Company’s new independent registered public accounting firm, effective as of June 1, 2017.
During the twelve month period ended December 31, 2015, and December 31, 2014, respectively, neither the Company nor anyone on its behalf consulted with MaloneBailey, LLP with respect to (1) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s Financial Statements, and neither a written report was provided to the Company nor oral advice was provided that MaloneBailey, LLP concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (2) any matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) or a reportable event (as described in Item 304(a)(1)(v) of Regulation SK).