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Hasty SPAC Audits Led to Accounting Snafus, Ex-SEC Official Says

Feb. 1, 2022, 8:38 PM

The accounting snafus that tripped up SPACs en masse in 2021 were due to auditors ignoring the nuance of U.S. accounting standards in a fast-paced deal-making environment, the former top official of the SEC’s Division of Corporation Finance says in an unusually blunt academic paper blasting “myths” about the blank-check boom.

“In essence, the SPAC professionals kept hitting the copy / print button,” John Coates wrote in a paper published Monday that broadly dissects the special purpose acquisition market. “So what may seem like hundreds or even thousands of professional decisions to use one type of accounting may in ...