8-K

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  -------------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) July 18, 1998
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                             Diamond Equities, Inc.
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               (Exact Name of Registrant as Specified in Charter)


         Nevada                     0-24138                       88-0232816
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(State or Other Jurisdiction      (Commission                  (IRS Employer
    of Incorporation)             File Number)               Identification No.)


     2010 E. University Drive, Ste. 3, Tempe Arizona                     85281
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(Address of Principal Executive Offices)                              (Zip Code)


Registrant's telephone number, including area code  (602) 921-2760
                                                   -----------------


                                       N/A
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          (Former Name or Former Address, if Changed Since Last Report)

ITEM 4  CHANGE IN REGISTRANTS CERTIFYING ACCOUNTANTS

     On June 30, 1998, the Registrant  dismissed its independent auditors Wisan,
Smith, Racker & Prescott,  L.L.P.  effective as of that date. The reason for the
dismissal was that the Registrant,  with its offices  located in Tempe,  Arizona
and  the  previous  auditors'  office  located  in Salt  Lake  City,  Utah,  the
Registrant  found that the distance factor was  inconvenient  and the Registrant
decided it preferred to engage a local auditing firm.

     On June 30, 1998, the Registrant executed an engagement letter with its new
auditor, King, Weber & Associates,  P.C., certified public accountants,  1400 E.
Southern Avenue, Ste. 735, Tempe, Arizona 85282.

     The previous  accountant's report on the financial  statements for the past
two years did not  contain an adverse  opinion or  disclaimer  of opinion or was
qualified or modified as to uncertainty, audit scope or accounting principles.

     The decision to change  accountants  was approved by the Board of Directors
of the Registrant.

     During the two most recent fiscal years and interim  period,  there were no
disagreements with the former accountants on any matter of accounting principles
or accounting practices,  financial statement  disclosure,  or auditing scope or
procedure.

     (See former accountant's letter attached hereto as Exhibit 99)

ITEM 7. FINANCIAL  STATEMENTS AND EXHIBITS.

         (a) Financial Statements.

             Not Applicable

         (b) Exhibits.

             99.- Accountants letter

                                   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.


                                             DIAMOND EQUITIES, INC.


Date:    July 10, 1998                  By:  /s/ David D. Westfere
      ---------------------                -----------------------------------
                                                 David D. Westfere, President

EX-99

            [LETTERHEAD OF WISAN, SMITH, RACKER & PRESCOTT, L.L.P.]


July 10, 1998


Securities and Exchange Commission
Mailstop 9-5
Washington, DC 20529

Dear Sirs/Madams:

We have read Item 4 of Form 8-K of Diamond Equities,  Inc. (the "Registrant") as
filed with the  Securities  and Exchange  Commission on July 10, 1998 (the "Form
8-K") and have the following comments:

         We have no disagreement with any of the statements made in the Form 8-K
         and therefore agree with the statements made.

Very Truly Yours,

WISAN, SMITH, RACKER & PRESCOTT, L.L.P.

By: /s/ Bruce R. Wisan
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Its:  Managing Partner
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cc: Diamond Equities, Inc.