Page 43 - Initial Public Offering - An Introduction to IPO on Wall Street
P. 43
to current or potential services.
In addition to the above, you must get your financial reports audited and address any possible
disclosure and accounting problem. A business that wishes to go public should have its
financial and interim reports audited (vetted). In the usual operation of the business, it is simpler
and more cost-effective to carry out audits of financial reports, rather than doing this
immediately before going public.
When an organization achieves financial expertise, the preparation of quarterly financial
statements should start as well. Getting these statements ready in a timely manner will make a
firm's positive assessment by an investment banker more likely.
Although this is not a reporting requirement of the SEC, investment bankers may want to
incorporate unaudited accounting reports for the previous few quarters to showcase the
company’s progress and patterns.
If this quarterly financial information is published, underwriters usually request that it be
checked by external auditors under the Public Company Accounting Oversight Board's
(PCAOB) AS 4105, "Interim Financial Information Assessments" (previously AU 722 and
SAS 100).
Page 43
