Public companies and SEC registrants must have their financial statements audited by a PCAOB-registered audit firm. Summit Advisory provides PCAOB-standard audit services for public companies, companies preparing for IPO, and SEC reporting issuers — applying the rigorous standards the capital markets require.
Get a Free ConsultationWhat Is a PCAOB Audit?
The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act (SOX) of 2002 to oversee the audits of public companies and SEC-registered investment advisers. Only CPA firms registered with the PCAOB may audit the financial statements of companies that file reports with the SEC.
PCAOB audits apply a higher standard of rigor than GAAS private company audits. They require robust documentation, independence requirements, and for accelerated filers — an integrated audit that includes an opinion on the effectiveness of internal control over financial reporting (ICFR) under SOX Section 404(b).
Summit Advisory works with public companies, emerging growth companies (EGCs), and companies planning SEC registration or IPO to deliver PCAOB-compliant audit services that satisfy SEC filing requirements.
Schedule a ConsultationAll companies filing with the SEC (Form 10-K, 10-Q, 20-F) must use a PCAOB-registered audit firm.
Companies preparing to go public via traditional IPO, direct listing, or SPAC merger must have prior-year financials audited under PCAOB standards.
EGCs receive certain SOX exemptions but still require PCAOB-registered auditors and compliant audit standards.
SEC-registered broker-dealers must file PCAOB-audited financial statements and compliance reports with FINRA.
Our Services
From annual Form 10-K audits to SOX 404 integrated audits and IPO readiness assessments, Summit Advisory delivers the full scope of public company audit services.
Independent audit of annual financial statements under PCAOB Auditing Standards for inclusion in SEC Form 10-K or 20-F filings — with an unqualified, qualified, or adverse opinion as warranted by the evidence.
Integrated audit combining financial statement audit with an assessment of internal control over financial reporting (ICFR) for accelerated filers — required by Sarbanes-Oxley Section 404(b).
We audit the prior-year (and required comparative) financial statements under PCAOB standards needed for S-1 registration statements — preparing private companies for the transition to public reporting.
Assessment of your internal control over financial reporting framework, identification of material weaknesses or significant deficiencies, and practical remediation guidance before your integrated audit.
PCAOB-compliant audits of SEC-registered broker-dealer financial statements and supplemental compliance reports required under SEC Rule 17a-5 and FINRA filing requirements.
Audit and financial statement preparation support for SPAC target companies, including conversion from GAAS to PCAOB standards and assistance with SEC comment letter responses.
Our Process
We identify entity-level risks, significant account areas, and ICFR deficiencies — developing a risk-based audit plan that focuses resources on the areas of highest financial statement risk.
We test the design and operating effectiveness of internal controls over financial reporting, identifying control deficiencies and assessing their significance under PCAOB standards.
We perform substantive procedures on all significant accounts — revenue, expenses, assets, liabilities, and equity — applying PCAOB sampling and evidence-gathering standards throughout.
We issue PCAOB-compliant audit reports for inclusion in SEC filings — coordinating with your legal counsel and CFO to ensure the audit report is filed by your SEC deadline.
FAQ
GAAS (Generally Accepted Auditing Standards) applies to private company audits. PCAOB Auditing Standards (AS) apply to public company audits. PCAOB standards are generally more rigorous, requiring stronger documentation, more independent procedures, and enhanced quality control under AS 2101 and related standards.
SOX 404(b) applies to "accelerated filers" and "large accelerated filers" (generally $75M+ public float). Emerging growth companies and non-accelerated filers are exempt from 404(b), though they must still have PCAOB financial statement audits.
Your financial statements must be audited under PCAOB standards beginning with the fiscal year of your IPO or SEC registration. S-1 filings typically require two to three years of PCAOB-audited comparative financials.
A material weakness is a deficiency (or combination of deficiencies) in internal control over financial reporting that creates a reasonable possibility that a material misstatement in the financial statements will not be prevented or detected on a timely basis.