Verus International Inc (VRUS)

[GermanCol]

Thanks Bud-Wiser for reposting it, appreciate it and all that you do for this board and $VRUS. Now let me answer the new question. There is no contradiction. The last sentence relates to support documentation requested by the auditor during the audit and that was being delivered by the company and discussed, because as quoted below from the 8K, the audit wasn't finished. Auditors are always questioning and asking for more support (that's their job) and companies giving their points of view and documentation until they come to an agreement. As mentioned before policies are not black and white.

From the Engagement Date through the Effective Date, except as discussed in the following paragraph, there were no disagreements between the Company and MHM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, [/color]which disagreements, if not resolved to the satisfaction of MHM, would have caused MHM to make reference to the subject matter of the disagreement in connection with any report MHM would have provided to the Company. Furthermore from the Engagement Date through the Effective Date, there were no reportable events (as described under Item 304(a)(1) (v)(A)-(D) of Regulation S-K) for the Company.

The Company and MHM had certain unresolved discussions on whether, and how, to correct prior period financial statements for the following errors:

a. Unrecorded stock-based compensation, and
b. Classification of equity instruments (including conversion features, warrants, and stock compensation warrants) subsequent to the Company having an insufficient number of authorized shares to settle certain equity classified instruments.

Although MHM did not complete its audit prior to the Effective Date, MHM believes the errors are material to the prior period financial statements, including the annual and interim periods affected, and therefore, should be corrected by restating the financial statements previously filed (e.g., via a Form 10-K/A and Form 10Q/A). Additionally, the Company and MHM had certain unresolved discussions on the sufficiency of documentation necessary to support amounts recorded in the current period financial statements.

Link to the filing:

https://www.otcmarkets.com/filing/conv_pdf?id=13945564&guid=JDECUemXQT3Jd3h