UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 20, 2004
World Information Technology, Inc.
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(Exact name of Registrant as specified in charter)
Nevada 0-49795 80-0001653
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification)
2300 W. Sahara Ave. Suite 500-B, Las Vegas, NV 89102
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(Address of principal executive offices) (zip code)
Issuer's telephone number: (714) 391-6026
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Not Applicable
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(Former name or former address, if changed, since last report)
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
(a) Summary of Change in Accountants
Prior to this past year end, Management of our Company was considering steps to
provide the Company with greater professional expertise. Apart from changes in
Management, as we proceed into this New Year, the Company realized it needed a
larger, more experienced accounting firm: one with greater expertise dealing
with international companies, especially one with core business pursuits in
Asia. Asia is a vastly different economic, cultural and business environment
than the U.S., apart from the great distance separating the areas, which can
result in delays in communication, miscommunication and other problems, like
language related inconsistencies.
In this regard, we appointed the firm of Rosenberg Rich Baker Berman & Company,
P.A. ("Rosenberg Firm"), a northeastern accounting firm, to act as the principal
auditing firm for our Company. This followed the resignation of the prior
accounting firm. (Starting before the December 31 year end, and well before the
resignation of the old firm, the Company was considering the Rosenberg Firm to
act as the Company independent auditors though no agreement was previously
reached.)
(b) Resignation of Old Firm
On or about January 25, 2004, the Board of Directors of our company became aware
of the resignation of the Company's independent accountants, Beckstead and
Watts, LLP ("Former Accountant"), which apparently resigned as principal
accountants by letter dated January 15, 2004, to the former C.E.O. (not the
Board of Directors). Though dated January 15, the information was received
subsequently, during a period of time involving such problems as the recent
departure of the Company C.E.O., bad weather conditions in the northeast
effecting our ability to communicate with domestic company personnel and
advisors, and the celebration of the Chinese New Year, which just occurred and
made it difficult to proceed with Company obligations (given the practical shut
down of business in celebration of the event--approximately a week long
tradition).
The Former Accountant's work, for this past year financial statements, was
limited mostly to reviews covering the quarters ended March 31, 2003, June 30,
2003 and September 30, 2003 on the Management prepared financial statements of
the Company, and Management indicated to the Former Accountant, prior to its
resignation, the Company had an interest to engage a new, more experienced firm
for the audit of the recently completed year end. (These quarterly financial
statements were prepared by the Company, not the Former Accountant.)
None of the review reports contained any adverse opinion or disclaimer of
opinion, nor was the Company notified of any such matter at the times such
reviews were prepared by the Former Accountant, signed, sealed and delivered by
the Former Accountant and filed with the SEC with the Former Accountant's
consent and cooperation. From the filing of the last quarterly statement, until
the resignation, many weeks had passed, without any objection from the Former
Accountant to their own review report. At no time did the Former Accountant
conduct any audit of any books and records or financial statements of our
Company for this past year.
At no time, prior to their resignation, were there any disagreements between the
Company and the Former Accountant on any matter of accounting principles or
practices, financial statement disclosures or auditing scopes or procedures.
During September, 2003, the Former Accountants indicated they needed additional
assistance, beyond their firm's own abilities, in connection with the accounting
work in Asia. This was not a disagreement but an issue did exist on the need for
more accounting services to assist the Former Accountant. In this regard, the
Company paid the Former Accountants an additional $10,000 which they represented
would be used for their firm to hire an accountant in Hong Kong, whom they
chose and contracted with to their satisfaction, to travel to the Company
operating facilities to handle accounting related issues. Between the early part
of September, 2003 until the date of November 15, 2003 (deadline for last
quarter review for period ended September 30, 2003), the Former Accountants
undertook whatever efforts they needed to be comfortable with their review work
effort, and the result was the issuance of their review report for the quarter,
issued in November, 2003, with no further discussion or correspondence relating
to any concerns whatsoever at the time.
The Board of Directors of the Company, at a meeting held January 25, 2004
acknowledged the resignation of the Former Accountants and resolved to proceed
with an appointment of the new firm, the Rosenberg Firm, to act as the principal
accountants, with the engagement to include audit of this recently completed
December 31, 2003, year end. The engagement was confirmed this past week on
January 27, 2004.
There were no disagreements between the Company and the Former Accountants on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of the Former Accountants would have caused them to make reference
to the subject matter of the disagreement in connection with their review
report. (There was no reference made in any of their review reports.) The
January 15, 2004 letter, delivered following the resignation, indicates they had
become aware of certain deficiencies in the internal control environment of the
Company. However, it is stated that these deficiencies developed subsequent to
their audit for the year ended December 31, 2002.
No committee of the Board of Directors, or the Board of Directors, discussed the
subject matter of any disagreement with the Former Accountants.
On February 4, 2004, the Company sent this filed report on Form 8-K to Beckstead
and Watts, LLP, the Former Accountants, requesting their comments on the
information contained herein. The anticipated responsive letter from Beckstead
and Watts, LLP will be filed following receipt.
(c) New Independent Accountants
On January 27, 2004, the Board of Directors of the Company engaged the firm of
Rosenberg Rich Baker Berman & Company, P.A. 380 Foothill Road, P.O Box 6483,
Bridgewater, New Jersey 18807, as independent auditors of the Company for the
period ending December 31, 2003. The Rosenberg Firm has over 20 years experience
in international financial statement matters, and over 25 years experience as
auditors, and has a full staff of accountants and support personnel including
persons who speak Chinese and are available to travel to Asia, often being
physically present within the general geographic area of the Company operations
on trips assisting other Asian related companies.
Rosenberg Rich Baker Berman & Company, P.A., sometimes called the "Rosenberg
Firm" in this document, will audit the Registrant's financial statements for the
December 31, 2003 year end. As to the Company's two most recent fiscal years or
subsequent interim period, the Company did not consult Rosenberg Rich Baker
Berman & Company, P.A. regarding the application of accounting principles to a
specific transaction, either completed or contemplated, or the type of audit
opinion that might be rendered on the Company's financial statements, nor did
Rosenberg Rich Baker Berman & Company P.A. provide advice to the Company, either
written or oral, that was an important factor considered by the Company in
reaching a decision as to any accounting, auditing or financial reporting issue.
Further, during the Company's two most recent fiscal years or subsequent interim
period, the Company did not consult the Rosenberg Firm on any matter that was
the subject of disagreement or a reportable event.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Exhibits
Item Description
16 Letter regarding resignation of Former Accountants.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
World Information Technology, Inc.
By: /s/ Shyng-Jiann Lin
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Shyng-Jiann Lin
Acting Secretary and Director
Date: February 4, 2004