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Knowledge & Insights

SEC & Canadian Filings: Auditor’s Guide


Navigating the complexities of SEC filings in the U.S. and registration statements in Canada can be daunting for any business. These legal and financial processes are crucial for companies looking to raise capital through public offerings and private placements. At GreenGrowth CPAs, we ensure compliance with all regulatory requirements and help prepare your business for a successful filing.

The Goal: Seamless SEC & Canadian Filings Through Expert Guidance

Our primary goal is to help clients with filings in the U.S. under the SEC or in Canada. The process includes various filings such as S-1, Reg A, and F-1 in the U.S., and Short Form and Long Form Prospectus in Canada. Each filing type demands a unique approach, depending on the nature of the stock registration or capital raise.

Adhering to PCAOB and CAS Standards

Auditors play a critical role in this process, adhering to stringent standards set by the Public Company Accounting Oversight Board (PCAOB) and Canadian Auditing Standards (CAS). Key PCAOB guidelines include AS 4101, which outlines auditors’ responsibilities related to filings under federal securities statutes, and AS 3110, which addresses the dating of independent auditors’ reports. 

In Canada, standards like CAS 7150, 7170, and 7200 guide auditors in giving consent for the use of their reports in offering documents and assisting underwriters.

When an audit report is part of a federal registration or offering document, auditors must perform extra procedures and give consent if satisfied. This ensures the financial statements accurately reflect the company’s status and disclose all significant events.

If a company is raising funds, auditors may need to provide a comfort letter for underwriter due diligence. This document assures the financial information’s accuracy, protecting all parties in potential litigation.

Timelines and Stale Financials: Keeping Information Current

It’s essential for companies to keep their financials up-to-date in these documents. Regulatory bodies like the SEC have specific timelines within which financial statements can be considered valid. For instance, for S-1 filings, audited financials must not be older than 134 days from the year or quarter end. If these timelines aren’t met, companies might need to undergo another interim review or annual audit to refresh their financials.

Procedures for Ensuring Accuracy and Compliance

Our compliance procedures are meticulous. We coordinate with governance bodies, review documents thoroughly, and check financial figures against audits. We also test for subsequent events and update our audit reports accordingly.

Requirements for Issuing Comfort Letters

For filings involving underwriter comfort, our procedures are even more stringent. We offer different comfort levels based on audited and reviewed financials and other management-provided documents. This comprehensive approach ensures that all parties have a clear understanding of the financial implications of the offering.

GreenGrowth CPAs: Your Partner in Financial Compliance

At GreenGrowth CPAs, we pride ourselves on our profound technical expertise and our commitment to effective communication and detailed documentation. We understand that a successful audit extends beyond mere numbers. It’s built on clear, precise interactions with audit committees and boards. Our team is rigorously trained in both PCAOB and CAS standards. They ensure that every audit is supported by expert knowledge and attention to detail.

Interested in learning more about how we can help your business with its SEC or Canadian filings? Book a free consultation today! Let us help you prepare your business for success in the financial marketplace.

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