IPO (Initial Public Offering) is a process of public listing of company’s securities. The auditor’s role in the process of preparing and approving the prospectus primarily consists in the audit of the historical financial information included in the prospectus. The audit opinion confirms whether the financial data (in the form of financial statements) for the previous 3 years are true and fair, and consistent with the most recent accounting policies and reporting standards. If additional interim accounts are presented in the prospectus or its update, the audit opinion or review report may accompany them thus increasing credibility. If the audit was performed on these accounts, the prospectus is valid longer.
Audit and review of financial information
Audits and reviews of the historical financial information prepared in accordance with Polish Accounting Standards and/or International Accounting Standards / International Financial Reporting Standards (IFRS)Reviews of forecasts and estimated financial informationReview of pro-forma informationComfort letters
· Prospectus preparation advisory services
· Prospectus’ (IOC) reading
· Prospectus’ (IOC) approval support
· Preparation of the financial sections of the prospectus
· IFRS conversion projects
· Advisory services regarding financial instruments and share-based motivation programs
IT systems changes
· IT systems – implementation and audit
· Corporate governance advisory
· Design and implementation of the corporate risk management systems
The regulations governing reporting for IPO are often unclear, while the structure and history of the company may be complicated. In many cases therefore, the proper selection of accounts and financial data to be published in the prospectus is the main challenge where the auditor’s assistance may be of a help. It is important to ensure that the auditor has sufficient knowledge and documented IPO projects experience.