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No requirement for audited financials, only reviewed financials by a CPA. Which makes this stuff all the more risky.
by howlingfantods 10y ago
No requirement for audited financials, only reviewed financials by a CPA. Which makes this stuff all the more risky.
- strommen 10y agoApparently it depends on if you're raising over 500K [1]: "A company offering more than $500,000 but not more than $1 million of securities relying on these rules for the first time would be permitted to provide reviewed rather than audited financial statements, unless financial statements of the company are available that have been audited by an independent auditor;" [1] https://www.sec.gov/news/pressrelease/2015-249.html https://www.sec.gov/news/pressrelease/2015-249.html
- howlingfantods 10y agoI don't mean to be rude, but if you read the quote you posted, it directly contradicts your point. Specifically "permitted to provide reviewed rather than audited financial statements." Of course if a company already has audited statements, they have to submit these more rigorous audited statements.
- thirru 10y agoAny day better than what you get on Kickstarter. It's a start and a full-audit costs 25-50k which would literary defeat the purpose of this.