A new report from the Public Company Accounting Oversight Board sheds light on an area where PCAOB inspectors have observed relatively high rates of audit deficiencies: SPACs.
In recent years, the PCAOB has considered SPAC-related risks to investors as it has planned its inspections. PCAOB inspectors have once again included SPACs among their list of priorities for 2023 inspections, reports CPA Practice Advisor.
From 2021 to 2022, PCAOB inspectors reviewed more than 100 audits of companies that were either considered SPACs or that were formed through a de-SPAC transaction. The staff report noted:
- The PCAOB reviewed 44 SPAC-related audits performed in 2021. Of those audits, 61% had at least one deficiency.
- The PCAOB reviewed 71 SPAC-related audits performed in 2022. Of those audits, 37% had at least one deficiency. Read more.
