Governance IssuesTM
Volume 2022, No. 2
July 29, 2022
In This Issue
The audit process is a two-way street between auditors and companies, and we first review PCAOB inspection focus points with a slant towards public company actions. We round out this Issue with two articles exploring current trends in exit strategies in a softening marketplace and the evolving ESG revolution.
The Public Company Accounting Oversight Board (PCAOB) released a new Spotlight publication in late June, 2022, called Staff Overview for Planned 2022 Inspections (Spotlight) to highlight focus areas for their 2022 inspections of public company audits. While the PCAOB’s inspection program is for registered public accounting firms who audit U.S. public companies, other issuers, and broker-dealers, this article aims to point out potential indirect ramifications for public companies.
Greater awareness on PCAOB inspection focus points can shed light on what public companies can do proactively to better prepare for their annual audit and interim reviews
Today, prospective buyers want sellers to be more transparent and thorough in their assessment and disclosure of potential risks
As valuations soften amid ongoing market volatility, private equity fund managers are turning to more strategic exit planning. Coming off a year of explosive M&A growth and exits in a high-valuation environment, fund managers absorbing inflation and interest rate data may delay exits. In a market that continues to be dynamic and unpredictable, portfolio managers will need to prioritize several aspects of exit planning to ensure they generate attractive returns and, by extension, secure follow-on fundraising.
2021 proved to be an unprecedented year on many fronts, not the least of which was the explosion of ESG, in both urgency and visibility. Companies face changing expectations, not only from investors and regulators but from customers, employees and lenders, who are demanding greater accountability and transparency around ESG factors.
Given the convergence of stakeholder demands, reporting expectations and anticipated regulation, ESG appears to be solidifying its place on the strategic business agenda
Kral Ussery is a national CPA firm providing services that external auditors cannot due to independence concerns, such as accounting advisory, valuations, and internal audits. Download our services flyer.
About Governance IssuesTM
Governance IssuesTM is an electronic newsletter published by Kral Ussery LLC, a public accounting firm delivering advisory services, litigation support and internal audits. The newsletter focuses on our practice areas of SEC compliance, internal controls, IT general controls, valuations, PPAs, IPO readiness, M&A transactions, US GAAP compliance and internal auditing.
Content in this newsletter is for general information purposes only and should not be used as a substitute for professional consultation.
Kral Ussery LLC |
TX Office (817) 416-6842 | NV Office (702) 565-2727