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Replies to post #19475 on Auri Inc (AURI)
09/15/23 3:42 PM
09/15/23 3:56 PM
09/15/23 4:37 PM
M&K CPAS PLLC, was disciplined by the Board in May 2016 based on discipline by the United
States Securities & Exchange Commission (“USSEC”).
The Board approved a Stipulated Findings of Fact, Conclusions of Law, Disciplinary and Consent
Order with the following provisions:
1. M&K CPAS PLLC’s registration LLC-0294 shall be placed on probation for a period of three
(3) years from the date of the Consent Order.
2. M&K shall provide to the Board copies of any correspondence with the USSEC and/or
USSEC Staff and copies of any and all reports and certifications required by the USSEC for
M&K’s Independent Consultant undertaking within ten (10) days of its date. This
requirement will continue until the USSEC is satisfied with M&K’s undertakings.
3. M&K will not accept any new engagements to audit any issuer, as defined in Section 3 of
the Securities Exchange Act of 1934 (15 U.S.C. 78(c)), during the probationary period or
until the USSEC is satisfied with M&K’s undertakings, whichever occurs first.
4. During the probation period, M&K shall provide quarterly reports to the Board listing the
names of new clients in Nevada and the public accounting services provided to such clients.
The report shall be submitted to the Board within ten (10) days of the end of each quarter
and provided under penalty of perjury.
5. If performing Nevada attest services for non-public clients, i.e. attest services for Nevada
corporations whose principal offices are located in Nevada or for audits submitted for
regulatory purposes in Nevada, M&K agrees to pre-release reviews by a licensed certified
public accountant for any attest work as defined in NRS 628.005 from the date of issuance
of the Board’s Consent Order until the probationary period ends. The cost of the pre-
issuance reviews shall be borne by M&K. The certified public accountant preparing the pre-
issuance reviews for M&K shall be approved by the Board. M&K shall submit engagement
quality review reports to the Board within thirty (30) days of the issuance of each report.
6. After the Final Report and Independent Consultant Certification have been accepted by the
USSEC, M&K may petition the Board to remove M&K’s registration from probation, and/or
modify or remove the restriction and condition requiring pre-release reviews of attest
engagements. M&K may also petition the Board to remove the condition requiring pre-
release reviews of attest engagements upon an adequate showing to the Board that such
a modification or removal is warranted based upon completion of two (2) audits with no
significant issues on pre-release reviews. The decision whether to remove M&K’s
registration from probation or to remove the pre-release review restriction and condition
shall be within the sole discretion of the Board. This modification or removal shall not be
unreasonably withheld.
7. M&K shall pay a civil penalty of $5,000.00 within thirty (30) days of the date of the Consent
Order.
8. M&K shall pay the Board’s investigative and attorney’s fees and costs of $6,374.75 incurred
in its investigation and associated with the Stipulated Findings of Fact, Conclusions of Law,
Disciplinary and Consent Order within thirty (30) days of the date of the Consent Order.
9. The discipline imposed on M&K shall be binding upon and apply to any successors or
assigns of M&K, including but not limited to any subsequent firm formed by the principals
of M&K or any purchaser or buyer of all or substantially all of the assets of M&K. In the
event a proposed purchaser of all or substantially all of the assets of M&K is an existing firm
registered in at least one state, M&K may petition the Board to remove the restriction and
continued discipline as it would otherwise apply to the purchaser under this provision. The
decision not to apply the disciplinary provisions to any potential purchaser shall be within
the sole discretion of the Board. However, if the prospective purchaser has no existing
discipline before the Board and otherwise would be considered in good standing with the
Board, the decision not to apply these disciplinary provisions to any potential purchaser
shall not be unreasonably withheld.
10. M&K’s failure to comply with any of the terms and conditions of the Consent Order shall
result in the immediate revocation of M&K’s registration LLC-0294 without any further action
or proceeding before the Board.
11. The Consent Order will be published in accordance with NAC 628.450.
09/15/23 7:50 PM
>>We<< will be switching the auditor to M&K CPAS since what we will have to do is audit every single subsidiary along with $AURI due to consolidated financials.
Artfest represents that it >>has<< engaged a new auditor and intends to file all delinquent periodic reports. However, the sworn Declaration states that: On March 22, 2013, I spoke by telephone with David Brooks of D. Brooks & Associates, which had been announced as the new auditor for Artfest. Mr. Brooks told me he had received an engagement letter from Artfest on February 12, 2013, but not his retainer of $2,000, nor any information upon which to begin the audit. Mr. Brooks said he had not done any of his client acceptance procedures either because he had not been paid his retainer. On April 3, 2013, Mr. Brooks left me a voicemail stating that the status of his audit of Artfest was the same, and that no retainer had yet been paid and no audit work had been done https://www.sec.gov/files/alj/aljdec/2013/id485bpm.pdf
