Innovative Designs Changes Auditors
Ticker: IVDN · Form: 8-K · Filed: Jun 6, 2024 · CIK: 1190370
Sentiment: neutral
Topics: auditor-change, financial-reporting
Related Tickers: INQD
TL;DR
INQD swapped auditors, Malone Bailey out, effective June 3rd.
AI Summary
Innovative Designs, Inc. (NASDAQ: INQD) filed an 8-K on June 6, 2024, reporting a change in its certifying accountant. The company has dismissed its previous independent registered public accounting firm, MaloneBailey LLP, effective June 3, 2024. The audit committee of the board of directors approved this change.
Why It Matters
A change in auditors can sometimes signal underlying issues with financial reporting or internal controls, warranting closer scrutiny by investors.
Risk Assessment
Risk Level: medium — Changes in auditors can sometimes precede or coincide with financial restatements or other disclosures that may negatively impact a company's stock price.
Key Players & Entities
- Innovative Designs, Inc. (company) — Registrant
- Malone Bailey LLP (company) — Dismissed independent registered public accounting firm
- June 3, 2024 (date) — Effective date of dismissal
- June 6, 2024 (date) — Filing date of the 8-K
FAQ
Why was Malone Bailey LLP dismissed as Innovative Designs, Inc.'s certifying accountant?
The filing states that the dismissal was approved by the audit committee of the board of directors, but does not provide specific reasons for the dismissal.
When was the dismissal of Malone Bailey LLP effective?
The dismissal of Malone Bailey LLP was effective as of June 3, 2024.
Has Innovative Designs, Inc. consulted with a new independent registered public accounting firm?
The filing does not explicitly state whether a new firm has been engaged, but it indicates that the company will engage a new firm and will provide the required disclosures regarding that engagement in a subsequent filing.
What is the significance of the audit committee's approval in this auditor change?
The audit committee's approval signifies that the decision to change auditors was made at the committee level responsible for overseeing the company's financial reporting and audit process.
Will Innovative Designs, Inc. provide further details about the auditor change?
Yes, the company stated that it will provide the required disclosures regarding the engagement of a new independent registered public accounting firm in a future filing.
Filing Stats: 640 words · 3 min read · ~2 pages · Grade level 12.1 · Accepted 2024-06-06 16:27:07
Filing Documents
- e5727_8-k.htm (8-K) — 26KB
- e5727_ex16-1.htm (EX-16.1) — 6KB
- image_001.jpg (GRAPHIC) — 15KB
- image_002.jpg (GRAPHIC) — 11KB
- 0001731122-24-000921.txt ( ) — 232KB
- ivdn-20240603.xsd (EX-101.SCH) — 3KB
- ivdn-20240603_lab.xml (EX-101.LAB) — 33KB
- ivdn-20240603_pre.xml (EX-101.PRE) — 22KB
- e5727_8-k_htm.xml (XML) — 3KB
01 Change in Registrant's Certifying Accountant
Item 4.01 Change in Registrant's Certifying Accountant On June 3, 2024, the Registrants' CEO dismissed RW Group. LLC ("RW Group") as the Registrant's independent registered public accounting firm. RW Group served as the Registrant's independent public accounting firm since 2021. The Registrants Board of Directors neither recommended nor approved the decision to change accountants The audit reports of RW Group on the Registrant's financial statements for the fiscal years ended October 31, 2022, and 2023, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle other than an explanatory paragraph regarding the Registrant's ability to continue as a going concern. During the Registrant's fiscal years ended October 31, 2022 and 2023, and through. January 31, 2024, there was no disagreement(s) with RW Groupon any matter of accounting principles or practices, financial a reference to the subject matter of the disagreement(s) in connection with its report, nor were there any "reportable events", as such term is described in Item304(a)(1)(v) of Regulation S-K promulgated under the Securities Act of 1934, as amended (the "1934 Act"). The Registrant provided RW Group with a copy of this Form 8-K prior to filing with the U.S. Securities and Exchange Commission ("Commission") and requested RW Group to furnish the Registrant with a letter addressed to the Commission stating whether it agrees with the above statements. A copy of RW Group's letter, dated June 6, 2024, is attached as Exhibit 16.1 to this Form 8-K.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit 16.1 Letter from RW Group. LLC Exhibit 104 Cover Page Data File (embedded within the Inline XBRL document) 2
SIGNATURES
SIGNATURES 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. DATE: June 6, 2024 Innovative Designs, Inc. By: /s/ Joseph Riccelli Joseph Riccelli, Chief Executive Officer 3