PCAOB Issues Publication on Inspection Observations Related to SPACs
April 21, 2023
The PCAOB has issued Spotlight: Inspection Observations — Audits of Special
Purpose Acquisition Companies and De-SPAC Transactions.
The publication discusses selected areas of focus for the Board’s inspections of
audits of SPACs and de-SPAC transactions, including:
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Valuation of financial instruments by using complex valuation models.
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Quarterly mark-to-market valuation adjustments.
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Identification of the accounting acquirer in a business combination.
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Internal control over financial reporting.
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Financial presentation and disclosures.
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Potential restatements.