IPO / Prospectus Notes

Question 1

Key points to comment on - Filings

Answer 1

1. interim and annual filings are submitted to the CSA by the Company

Question 2

Key points to comment on - CPAB

Answer 2

The firm will be subject to CPAB oversight through practice inspections

Question 3

Key points to comment on - Independence rules

Answer 3

Cannot provide audit if former team member has financial oversight role with the client

Question 4

Key points to comment on - Quality control

Answer 4

Quality control reviews and partner rotations every five years

Question 5

Key points to comment on - Journal entries

Answer 5

We cannot prepare journal entries - the client must approve them

Question 6

Key points to comment on - Services

Answer 6

We cannot provide supplemental services such as valuations, HR, IT

Question 7

Key points to comment on - Separate Engagement

Answer 7

need to perform 7150 states we will not perform an audit or review over offering docs

Question 8

Key points to comment on

Answer 8

1. Filings
2. Independence
3. Quality control
4. Journal entries
5. Services
6. 7150

Question 9

Procedures to perform - Reading

Answer 9

read the prospectus and other information including minutes and legal responses

Question 10

Procedures to perform - Review

Answer 10

Perform review procedures such as inquiry and analytics for plausibility of the unaudited interim FS

Question 11

Procedures to perform - Pro-forma statements

Answer 11

1. verify if historical info is from audited FS
2. Make inquiries about basis used to make statements
3. Recalculate adjustments to create statements

Question 12

Procedures to perform - Statements

Answer 12

Ensure the FS reported on by auditor are accurately presented in prospectus

Question 13

Procedures to perform

Answer 13

1. Reading
2. Review
3. Pro-forma statements
4. Statements