INSIGHTS AND RESOURCES

SPACs: Auditor and audit committee considerations

FINANCIAL REPORTING INSIGHTS  | 

Authored by RSM US LLP


The Center for Audit Quality recently released Alert 2021-01, Auditor and Audit Committee Considerations Relating to Special Purpose Acquisition Company (SPAC) Initial Public Offerings and Mergers. This Alert discusses the five phases in the life cycle of a SPAC and some of the unique risks and challenges of a private company entering the public markets through a merger with a SPAC.

Audit committees of private companies determining whether to “go public” via a SPAC transaction should consider the following matters:

  • Public-company readiness
  • The track record of SPAC leadership in completing a SPAC transaction
  • The skillset, experience and independence of board members
  • Accounting, reporting and disclosure issues
  • The experience and independence of the external auditor

Likewise, auditors have much to consider related to SPAC merger transactions, including matters related to client acceptance, auditor reporting under both PCAOB and AICPA standards, the appropriate classification of warrants issued by the SPAC, and factors that could heighten fraud risk.

For further financial-reporting and audit considerations related to SPAC transactions, see the following RSM articles:

Let's Talk!

Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by RSM US LLP and originally appeared on 2021-05-07.
2020 RSM US LLP. All rights reserved.
https://rsmus.com/our-insights/newsletters/financial-reporting-insights/spacs-auditor-and-audit-committee-considerations.html

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

​Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how ​Vasquez & Company LLP can assist you, please call +1 213.873.1700.

Subscribe to receive important updates from our Insights and Resources.

  • Should be Empty: