US auditors struggled with verifying revenues for several newly minted public companies that had merged with a SPAC, according to audit inspections that targeted the complex transactions, Bloomberg reports.
The Public Company Accounting Oversight Board looked at how the six largest US firms handled 20 inaugural audits after clients went public either through a traditional IPO or by merging with a SPAC. Inspectors found fault with four of the post-merger, or de-SPAC, audits, according to a report the board released on Thursday.
Post-IPO audits were among the areas where the board focused as part of its 2022 target team inspections. Read more.
