When a company registers with the SEC (securities and exchange commission), the company must disclose certain information about its financial status. This information must be audited by a third party to ensure its accuracy. The third party is known as an auditor and must be a certified public accountant acting independently.
The auditor examines the company’s financial statements filed during a certain time period. Then, they provide a written report that includes an opinion on the authenticity of the data. When presented fairly, an unbiased opinion on the authenticity of a company’s financial reporting helps provide assurance to public investors.
What should an audit client expect? SEC audits usually require a review of the following information about a company:
- clients (new accounts and terminated accounts)
If this information is missing, incomplete, or poorly maintained, the company may receive a deficiency letter or sanction.
WHAT ARE THE SEC AUDITOR INDEPENDENCE RULES?
Reports filed with the SEC must be prepared in accordance with “Generally Accepted Accounting Principles,” or “GAAP.” Whether a certified public accountant is working with a public company or a private company, auditor independence is crucial for honest, objective financial reporting. When looking for accountants for SEC audits, certain restrictions apply.
Auditors must be independent — i.e. unaffiliated — of the company on which they are reporting. This means there can be no mutual or conflicting interest, and they must show “objective and impartial judgment.”
For more detail, please visit sec.gov.
Why Choose Haynie & Company?
Haynie & Company has been a proud provider of professional accounting services since 1960. Our full-service CPA firm in Littleton, near Denver, helps Colorado businesses stay on top of their finances in numerous ways.
After passing their CPA exam, our certified public accountants remain committed to ongoing education to give you the very best service possible. Plus, as a PCAOB-registered firm, our independent auditors know how to catch mistakes before they turn into crises.
In everything we do, we remain thorough, reliable, transparent, and honest. It’s all part of our dedication to ensuring the accuracy of the accounting industry and upholding the integrity of American commerce.
Contact Haynie & Company Today for A Free Consultation On Denver SEC Audits
Effective SEC audit response is important for the success of any publicly-traded company. Implement effective internal control, uphold strong business relationships, and protect the trust of your investors with help from an independent auditor.
Take advantage of Haynie & Company’s deep understanding of regulatory accounting practices. When preparing for an SEC audit, turn to our team of specialized SEC audit CPAs. Give us a call or visit us online today to schedule a free consultation.
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