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What is the PCAOB auditor process for public companies?

What is the PCAOB auditor process for public companies?

I’ve worked with public companies since 1998 in some form or fashion – either being the investor who provides the equity to “go public”, being the private company who goes through the process of going public, or being the consultant who helps the private companies through the process. One of the most frustrating parts of either “going public” or being public is interacting with the PCAOB auditors. Most of the frustration comes from the process, a good process at that, but a process of completing the audit itself – it’s a process that provides the auditors with the background documents and confirmation that the financial information that they have received is correct.

The Process

For the uninitiated, the process is one that can be daunting the first time you go through it, and can make you hate even your best friend who is a PCAOB auditor, but it is a process that you must be familiar with in order to complete.  Here is the process step by step:

  1. Engagement letter
  2. Requested information list issued from auditor
  3. Information requested sent to auditor
  4. Process information, roll forwards, etc.
  5. First partner review
  6. Client responses to (5)
  7. First audit partner review
  8. Client responses to (7)
  9. Second audit partner review
  10. Client responses to (9)
  11. If 10K, auditor must receive all third party confirmations prior to filing
  12. Partners sign off
  13. EDGAR-ization / XBRL
  14. EDGAR-ized sent to auditor / client for sign off
  15. EDGAR-ized & XBRL filed

Usually after you’ve gone through all of this, it’s time for a vacation because it is a gut wrenching process by which the auditors determine if they have all the detail in order to provide their opinion that the financials are a fair representation of reality.  Remember, this is not an opinion that you have not committed fraud or some other malfeasance, but that you have provided them all of the documentation that they require.

 


© 2017 by Rhodes Holdings LLC and Robert C. Rhodes, all rights reserved.

 
 

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ARSC posts current information on OTC Markets

ARSC posts current information on OTC Markets

21American Security Resources Corporation, publicly listed on the OTC Markets for quotation under the symbol ‘ARSC’ posted current information for the quarter today.  The posting is available at:

OTC Markets’ financial listing service

Other information is available at these sources:

Long time client…

ARSC is a long time client of Rhodes Holdings LLC.  We believe in their business plan, and we believe that they’re going to be successful in the future.  Take the time to call the company’s officers, Frank Neukomm or Bob Farr – they definitely can win you over to their business plan.

 


© 2017 by Rhodes Holdings LLC, all rights reserved.

 

 
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Posted by on May 17, 2017 in BLOG, Business

 

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SEC issues abound, getting caught up…

SEC issues abound, getting caught up…

There are just a lot of things happening in the merchant banking world.  First, of course, President Trump’s first 100 days in office have been a slow walk towards the lofty goals he set forth when he was running for office – don’t get me wrong, I believe that he has made strides towards his goals, but they were always long term goals in the first place.  Rolling back regulation, check.  Obamacare reform, well, working on it…

Now onto other updates:

  • I always follow what Alchemy OTC Markets Specialist does and thinks, so here is his latest update – “SEC Issues Progress Report on United States Title III Equity Crowdfunding Growth Rate“.
  • If you are in the public markets and you’re not reading the monthly OTC Markets’ newsletter, you should.  Here is the March 2017 issue.  Here is an excerpt from it that I think all of the PR / IR professionals need to heed, “Make sure to follow and tag us @otcmarkets in your latest news, positive earnings and corporate actions on Facebook and Twitter. Use the hashtag #OTCQB, to make it easier for investors to find your latest updates.

 

 
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Posted by on March 22, 2017 in BLOG, Public markets

 

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Shell Game

Shell Game

I believe that all professionals associated with the public markets, and all individuals who invest in them should be familiar with this information. Please read this blog entry from OTC Markets and comment on your thoughts associated with it.

OTC Markets Blog

During conversations with compliance and risk departments over the past year, the topic of shell companies always comes up.  For diligent compliance officers the reason for this focus is obvious, shell companies and more specifically trading with their affiliates are noted specifically in key notices and regulations, including:

  • FINRA Regulatory Notice 09-05 – Unregistered Resales of Restricted Securities: Shell company status at the time of issuance is noted specifically as a red flag.
  • Office of Compliance Inspections and Examinations (OCIE) Alert October 2014 – Broker Dealer Controls Regarding Customer Sales of Microcap Securities: The alert noted that companies with nominal assets and low operating revenue should be a consideration when considering whether to file a Suspicious Activity Report (SAR).
  • Rule 144 – Specifically bars the use of the 144 safe harbor for securities issued by a shell company or former shell company[i].

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Posted by on January 19, 2017 in BLOG

 

A Brand-New Website Coming Soon!

Very impressive changes coming to the State of Texas’ business offerings on the web – I tend to use these every day, and they have gotten a lot better.  Take a look at the Texas taxable entity search site (way better).

Source: A Brand-New Website Coming Soon!

 
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Posted by on August 29, 2016 in BLOG

 

Mr. Rhodes to present at the next FundingPost event

Mr. Rhodes to present at the next FundingPost event

Are you looking to meet investors and learn more about raising capital in Houston? You do not want to miss this event. Get registered for the FundingPost Investor RoundTable on Thursday, June 16th, 2016. FundingPost has hosted 350+ sold-out venture events in 23 cities over the past 15 years.

This next Houston event is located at The Work Lodge here. The Work Lodge is a member only shared workspace with modern offices, amazing conference rooms, and a meaningful business community. We will have several investors in attendance and several investors on our panel to discuss the Houston Start-up community and how to raise capital for your start-up.

We will have a panel of local and out-of-town investors focused on pitching to early-stage investors, and what it really takes to get them to write you a check! We will be discussing the things that are most important to them when they are considering an Investment, the best and worst things an entrepreneur can do to get their attention during a pitch, and, of course, the best ways to reach these and other Investors. There will be plenty of time for networking with the Investor panelists during the breaks and networking party!

20 entrepreneur attendees who sign up will get the option to pitch their business idea in 1 minutes or less in front of the investor panel.

Along with the pitch competition, there is an educational and networking component to the event. All attendees will be gaining an understanding of what investors are looking for in the Houston market and what our entrepreneurs are building. All attendees will be able to market themselves (including their products and/or services) throughout the event through networking with one another.

Location

Location: 118 Vintage Park Blvd., Suite W  Houston, TX 77070
Date: Thursday, June 16, 2016
Time: 3:00 – 5:30
Cost:
– Entrepreneur: $45
– Investor: $55
– Table Sponsor: $500

Speakers

  • Steve Tinkle, Chief Doer of Sumo Business
  • Robert Rhodes, Rhodes Holdings LLC
  • Cody Cupp, Principle, Founder – UNEE GROUP- HAN Member
  • Jason Kaminsky, Venture Partner, Propeller.vc
  • Casey Minshew, Texas Director, FundingPost.com – Opening Remarks

 

Please go to the FundingPost website for more information and to register for this event…

 
 

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Getting Started with a new corporation…

Getting Started with a new corporation…

We will take a break from looking at different types of organizations to take a look at the mechanics of creating a new corporation.  Since there have been many requirements added since 9/11, including those added by the Homeland Security Agency and Dodd-Frank requirements, many items are now required that were not required previously before people will accept that you have a “real” organization.

Mechanics

Here is a simplified step by step creation list for people, at least in the Great State of Texas:
  1. Incorporate – file your articles of incorporation with the domiciled state
  2. By Laws – Write them
  3. Incorporation meeting of the board of directors – minutes to adopt articles of incorporation, By Laws, appoint officers
  4. Issue stock certificates – must create a stock ledger
  5. Create a corporate binder
  6. Entity Identification Number (EIN) with the U.S. I.R.S.
  7. Create a Dun & Bradstreet Number (D.U.N.S.)
  8. Get an Internet domain name
  9. Create a website and associate the Internet domain with the website

This was originally on another website, KeyToFunding.com, in a posting entitled “Getting Started with a new corporation…” on October 6, 2015.  Copyright 2015 by Key To Funding organization.
 
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Posted by on April 26, 2016 in BLOG, Business

 

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