BECKSTEAD AND WATTS, LLP
CERTIFIED PUBLIC ACCOUNTANTS
3340 Wynn Rd., Ste. B
Las Vegas, NV 89102
702.257.1984
702.362.0540 fax
VIA FACSIMILE
(Original via US Postal Service)
January 15, 2004
Mr. Gary Morgan, CEO
World Information Technology, Inc.
2300 W. Sahara Ave, Ste.
500-B, Box 18
Las Vegas, NV 89102
Dear Mr. Morgan,
We hereby resign as principal auditor for World Information Technology, Inc. and
subsidiaries effective the date of this letter of notice.
The purposes of our resignation are outlined as follows:
1 - We have not received a satisfactory response to our letter to you dated
September 4, 2003 whereby we stated the following:
"During the course of certain "discovery" procedures which we have performed
subsequent to the issuance of our audit report dated March 14, 2003 on the
financial statements for the year ended December 31, 2002, we have become aware
of certain deficiencies in the internal control environment of World Information
Technology, Inc. (the "Company") which have developed subsequent to our audit of
the Company. The deficiencies identified are as follows:
Control of assets
The Company has transferred certain accounts receivables to unknown third
parties for "collection" purposes. We have not been able to identify a
contractual basis for the transfer. By making the transfer, the Company has a
perceived loss in control of collections, identification of the validity of the
accounts receivable balance as of December 31, 2002, and the loss of control
over cash which belongs to the Company.
Management override
The Company has a perceived loss of inherent management override of control of
Company assets by transferring the accounts receivable out of the Company's
control. Company management loses the control to aggressively pursue collection
of funds due the Company by transferring its collection rights to an unknown
third party.
Mr. Gary Morgan, CEO
World Information Technology, Inc.
January 15, 2004
Page 2
Management accountability
The Company has aggressively prevented us access to certain individuals who have
decision-making authority over the Company books and records. We have made
repeatedly unsuccessful attempts to discuss certain "issues" with Company
management who should have direct knowledge and accountability for the Company
books and records.
As a result of the above, we are currently assessing our ability to continue as
independent auditors under the current Company environment. As you know, we rely
substantially on the inherent controls and accountability by Company management
over the Company's financial affairs. We have perceived a significant break-down
in management's ability to perform it functions to adequately manage those
controls and accountability."
2 - We have become aware of certain press releases issues by you without privy
to our firm dated August 19, 2003, August 22, 2003, August 26, 2003, November
14, 2003, November 24, 2003, December 21, 2003, and December 22, 2003 which
contain claims made by you and the Company which, to date, are unproven and
potentially misleading.
This is also to confirm that the client-auditor relationship between World
Information Technology, Inc. and subsidiaries (Commission File Number 000-49795)
and Beckstead and Watts, LLP has ceased.
Sincerely
/s/ Brad Beckstead
- --------------------------
G. Brad Beckstead, CPA
Managing Partner
Beckstead and Watts, LLP
cc: Office of the Chief Accountant
SECPS Letter File
Securities and Exchange Commission
Mail Stop 9-5
450 Fifth Street, N.W.
Washington, D.C. 20549