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SEC Flags SPAC Accounting, Audit Pitfalls for Merger Targets (1)

March 31, 2021, 9:44 PMUpdated: March 31, 2021, 11:05 PM

The Securities and Exchange Commission issued a reminder Wednesday that SPAC mergers that create new public companies must file audited financial statements, and that means they will need experienced accountants, auditors and independent corporate directors on their team to get it done.

  • The Office of the Chief Accountant issued guidance intended to help once-private companies make the leap to SEC registrants, including transitioning away from private company accounting exceptions, gaining to new effective dates to adopt accounting changes, and possibly needing to switch auditors to ensure compliance with strict conflict of interest rules and public company audit standards.
  • The office ...

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