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
October 14, 1996
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Date of Report
Forestry International, Inc.
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(Exact name of registrant as specified in its charter)
Colorado
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(State or other jurisdiction of incorporation)
0-023310 84-1116284
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(Commission File Number) (IRS Employer ID Number)
3573 East Sunrise Drive, Suite 225, Tucson, Arizona 85718
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(Address of principal executive offices including zip code)
Not Applicable
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(Former address, if changed since last report)
Item 1. Changes in Control of Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets.
Not Applicable
Item 3. Bankruptcy or Receivership.
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant.
As previously reported on February 12, 1996, KPMG Peat Marwick LLP
resigned as the principal independent accountants to audit the registrant's
financial statements. Effective October 2, 1996, the Company retained Gary
Gethmann, CPA, Ltd. for the purpose of auditing the financial statements
of the Company as of and for the year ended March 31, 1996. The Company
has no audit or similar committee on its board; thus, the change was
recommended and approved by the board and not by any such committee.
Item 5. Other Events.
Not Applicable
Item 6. Resignation of Registrant's Directors.
Not Applicable
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Exhibit to Item 7 Herein
ENGAGEMENT LETTER WITH GARY GETHMAN, CPA, LTD.
October 1, 1996
David Shorey, Treas.
Forestry International, Inc.
3573 E. Sunrise Dr., Ste 225
Tuscon, AZ 85718
Dear Mr. Shorey:
We are pleased to serve as independent auditors for Forestry International,
Inc. This letter is to confirm our understanding of the terms and
objectives of our engagement. Gary L. Gethmann will be in charge of all work
we perform for you. Auditing and reporting on your annual finanacial
statements is to be our recurring basic assignment. We would like also to
be helpful to you on current problems as they arise throughout the year.
We will audit the Company's financial statements for the year ended March 31,
1996 for the purpose of expressing an opinion on them. The proper recording
of transactions, safeguarding of assets, and the financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on the financial statements.
We will conduct our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence which supports the amounts and disclosures included in the financial
statements. It also includes assessing the accounting principles used
and estimates made by management, as well as evaluating the overall financial
statement presentation. If, for any reason, we are unable to express an
unqualified opinion on the financial statements, we will discuss the
alternatives with you in order to arrive at an acceptable solution.
Although the audit is designed to provide reasonable assurance of detecting
errors and irregularities that are material to the financial statements, it
is not designed and cannot be relied upon to disclose all fraud, material
errors, and all irregularities. However, we will inform you of any material
irregularities or illegal acts, unless they are clearly inconsequential,
that come to our attention.
Assistance to be supplied by your personnel, including the preparation of
schedules and analyses of account, has beeen discussed and we understand a
complete audit file has been prepared and will be available for our use.
Our fees will be filed semi-monthly as work progresses and are based on the
amount of time required at $150 per hour for Gary L. Gethmann time and $50
per hour for staff time, plus actual out-of-pocket expenses. We will
require a pre-payment of $5,000 upon signing of the engagement letter which
we will hold and apply to the final billing upon completion of the
engagement. We will also pass through to you the cost of a concurring
review of our workpapers and report which is a requirement we must satisfy
for SEC reporting purposes. Invoices are payable upon presentation and
must be paid promptly or we well have to interrupt our work until payment
is received.
If the forgoing is in accordance with your understanding, please sign and
return to us the duplicate copy of this letter.
We very much appreciate the opportunity to serve you and trust that our
association will be a long and pleasant one.
Sincerely
/s/ Gary L. Gethmann
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Gary L. Gethmann
Acknowledgement:
Forestry International, Inc.
Accepted:
/s/ David L. Shorey
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[Representative]
President
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[Title]
10/2/96
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[Date]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, Registant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
FORESTRY INTERNATIONAL, INC.
(Registrants)
By:/s/David L. Shorey
DATED: October 14, 1996 -------------------------------
David L. Shorey, Chairman & CEO
