In addition to public companies in United States filling quarterly financial reports on Form 10-Q abs 10-K, they are necessitated to report certain financial events on the current basis. Form 8-K is a more current report that public companies must file with the security exchange commission which announces the major events conducted by the company within a given year which the shareholders are entitled to know. As an auditor filling Form 8-K, my client would be the shareholders of the public company whose financial records of the events conducted are being filled (Cohen, 2014). In addition, the public company stakeholders and the security exchange commission would also be my clients because they are all associated with the affairs of the company. The role of this work is to explain why an auditor would file 8-K Interim Event, S-1 IPO registration report and the circumstances necessitating the preparation of the reports.
Circumstances necessitating me to prepare Form 8-K
As an auditor of a public company, the circumstances which would necessitate me to file an 8-form report would be: registration of business and its operations, financial information purposes, corporate governance and management, matters associated with financial and account statements, matters associated with trading and security markets and matters associated with asset backed securities. It is fundament for the auditor to report: New agreement made by the company, agreement termination, receivership and safety matters related with the company (Cohen, 2014). Acquisition and disposal of assets by the company needs to be reported, financial position and operation, material impairment and triggering events needs to be reported. The auditor has the role of filling the security listed transfer, notice the shareholders about delisting, highlight the unregistered sale of securities, list the rights of the stockholders. The auditor must also fill the changes failures of the previous financial statement and auditing, changes in registrant control, Directors’ nominations, amendments of the code of ethics, changes of service and credit enhancement and security Act updating disclosure.
Security exchange commission S-1 Registration Report
The security exchange commission form s-1 form is the initial filling form for the initial public offers which is necessitated to be filled by the public companies. As a matter of fact, the company’s securities which must meet the criteria required by S-1 filling must be filled before the securities are filled on the national security exchange (Cohen, 2014). The S-1 filling form necessitates a public company to provide information of its plan to use the accumulated initial capital, the business model to be implemented, the prospectus of the company, security safety plans, the stock offering price, methodology to be used during listing and the dilution that might occur during the process of securities listing. The security exchange commission necessitates the auditors of the company whose shares are to be offered to the public to disclose its material dealing with the directors and other stakeholders.
The S-1 report filling is different from the 8-K report filling because it is associated with the initial offering of the stock to the public, the in-depth picture of the business model and the disclosure of the material related with the dealings of the business (Cohen, 2014). On the other hand, 8-K filling report is associated with the affairs of the already listed company and concerned with the events which might cause the failure of the securities in the stock market. Filling S-1 IPO report is a tedious requirement which provide the company’s decision of going public. S-1 report must air out all the risks in the future that the company is likely to face during the trading period (Cohen, 2014). In comparison to 8- K report filling which is mainly associated with allegation of deception and fraud, S-1 IPO report filling must be reviewed by the security exchange commission in order to evaluate whether the company going public has the capability to survive in the future. In conclusion, given the S-1 IPO report is required for a company going public, the events and circumstances required while filling 8-K Report changed drastically.
Cohen, G. (2014). The differences in filling of S-1 IPO report file and 8- K report file by an auditor. Retrieved from: http://smallbusiness.chron.com/differences-s1-s8-filing-33577.html