Scores of companies that went public during the SPAC boom are heading into the financial year-end with weaknesses in their accounting practices, raising the prospect that their annual reports may not paint a true picture of their financial health, reports The Financial Times.
The failures of internal controls and poor bookkeeping practices, disclosed in quarterly reports over the past month, add more evidence for critics of special purpose acquisition companies, who say the trend has resulted in a large number of immature and potentially risky new listings. The companies themselves, meanwhile, are faced with escalating costs as they race to hire more accounting staff and reach the higher audit standards demanded by public markets. Read more.
