Last week, the Public Company Accounting Oversight Board released its semiannual white paper on emerging growth companies (EGCs).
In this Flash Report, we review the PCAOB's findings as well as implications for EGCs that report material weaknesses in their internal control over financial reporting. We also offer guidance to affected organizations to help them avoid or overcome such findings.
Potential EGCs looking to file publicly should consider undergoing a comprehensive evaluation of their readiness to become a publicly held organization. Those already public may need to fast-track their readiness and compliance initiatives.