Expert PCAOB Auditors & SEC Audit Services for Public Companies

Assurance Services

“Attesting the accomplishments and challenges and helping to assure strong foundations for future aspirations.”

Mercurius has been registered with the Public Company Accounting Oversight Board (PCAOB) United States since 2009, enabling us to provide audit and assurance services to various US public companies (i.e., SEC issuers) and broker-dealers.

Our experienced professionals work independently with audit committees and management to create appropriate audit plans, ensuring objective evaluations in today’s intricate regulatory landscape.

Seasoned Leadership with Unmatched Experience

Our leadership team, equipped with ‘Big Four’ backgrounds, possesses 25 years of practical experience in assisting SEC registrants. With a wealth of audit expertise, we deliver efficient audits and meticulous financial reporting that impeccably meet compliance standards.

PCAOB REPORT-2023

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PEER REVIEW REPORT-2023

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Public Audits for SEC Regulations

We empower entities aiming for SEC registration, ensure significantly reduced turnaround times, and offer seamless and efficient services to navigate the complexities of SEC regulations, which is particularly beneficial for new companies.

Our audit services include

Development Stage Support: Assisting companies with compliance filings like S-1, F-1, and Reg-A filings.
Diverse Company Assistance: Supporting publicly traded, mid-sized, and emerging-growth companies in Form 10K filings.
Periodic Filing Reviews: Review of periodic filings such as Form 10Q.
SEC Inquiry Assistance: Helping with responses to SEC comment letters and addressing inquiries.
Audit Engagement Roles: Playing significant roles in audit engagements, even supporting multinational corporations’ parent entity auditors in adhering to PCAOB standards.
Efficient Late Filling Assistance: Assisting in late filings like Form 10 and helping in achieving financial compliance if past deadlines were missed.

Sarbanes Oxley Compliance

SOX compliance, mandated by the Sarbanes-Oxley Act 2002, is a crucial annual requirement for US-based publicly traded companies. It involves the establishment of financial reporting standards, ensuring data security, monitoring breaches, maintaining electronic records for auditing, and demonstrating strict adherence to compliance requirements.

The Act simultaneously established the Public Company Accounting Oversight Board (PCAOB) to oversee audits of public companies operating under federal securities laws and registered broker-dealers with the Securities and Exchange Commission (SEC).

SOX compliance is a four-step process

Designing, implementing, and testing internal controls
Composing an annual statement on internal controls and their adequacy, signed by management and audited by a third party
Providing Audited Financial Statements to the SEC
Reporting significant changes to the public

Our Services

PCAOB Inspection & Peer Review

PCAOB Inspection

Mercurius has successfully completed multiple PCAOB inspections in the past, thereby ensuring it complies with professional standards.

PCAOB inspections aim to assess the firm’s compliance with PCAOB standards, along with other regulatory and professional requirements applicable to its quality control system. The review also covers in depth examination of selected high risk areas to verify adherence to established standards and rules.

Peer Review

ICAI conducts firm’s Peer Review, this process checks the quality and effectiveness of firm’s audit and attestation services, ensuring compliance to technical standards and maintain top-notch professionalism.

FAQs

1. What are SEC and PCAOB?

The SEC (Securities Exchange Commission) is a U.S. federal agency that regulates securities markets, protects investors, and ensures fair and efficient markets, whereas The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that oversees Auditors of public companies and broker-dealers to ensure accurate, independent, and reliable financial reporting.

2. Who needs an audit conducted as per PCAOB standards?

All Public companies, SEC-registered broker-dealers, and other issuers of securities need a PCAOB audit to ensure compliance with regulatory standards for financial reporting and investor protection.

3. Who oversees PCAOB?

The Securities and Exchange Commission (SEC) oversees and audits the PCAOB, ensuring it fulfills its mandate to regulate and improve the quality of public company audits, which are required by law.

4. What is a PCAOB inspection?

PCAOB inspections aim to assess the auditing firm’s compliance with PCAOB standards, along with other regulatory and professional requirements applicable to its quality control system.
Mercurius in India has completed multiple PCAOB inspections in the past, ensuring its compliance with the authority's professional standards.

5. What is the applicability of the SEC audit?

The SEC audit is applicable for the companies or enterprises in the U.S. that are publicly traded on to the registered platforms and where the public interest is wholly included. It is required to ensure compliance, transparency, and investor’s protection.

6. Who is required to have public audits for SEC regulations?

At MAS, the following services are offered for starting a business in India:
1. Publicly Traded Companies
2. Investment Companies
3. Registered Investment Advisers
4. Foreign Private Issuers
5. Certain Non-Profit Organizations

7. Is the SEC the Same as FINRA?

No, the SEC is a federal agency that regulates securities markets, while FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization overseeing brokerage firms and their registered representatives under SEC supervision.

8. What is the SEC Regulation G?

SEC Regulation G governs the disclosure of non-GAAP (Generally Accepted Accounting Principles) financial measures by public companies, ensuring transparency and comparability and preventing misleading in financial reporting.

9. What are SOX compliance requirements?

SOX (Sarbanes-Oxley Act) compliance requirements include:
1. Establishing internal controls for financial reporting.
2. Conducting annual audits and assessments of controls.
3. Certifying the accuracy of financial statements by executives.
4. Maintaining records for at least five years.
5. Implementing whistle-blower protection policies.

10. Who must Comply with SOX?

All Publicly traded companies in the U.S., their subsidiaries, and foreign companies listed on U.S. Exchanges must comply with SOX guidelines and provisions. Private companies preparing for an IPO may also follow its guidelines.

11. How can companies demonstrate SOX compliance to investors and regulators?

In general, companies can demonstrate SOX compliance to investors and regulators by keeping in mind the following points:
1. Conducting regular annual audits by independent external auditors to assess internal controls and financial statement accuracy.
2. Timely and accurate financial statements that comply with GAAP and report material changes promptly.
3. Proper documentation of financial processes and regular risk assessments are conducted to identify vulnerabilities.
4. Communicate compliance efforts and audit results regularly to stakeholders, fostering transparency and trust.
SOX compliance is usually a four-step process:

Designing, implementing, and testing internal controls
Composing an annual statement on internal controls and their adequacy, signed by management and audited by a third party
Providing Audited Financial Statements to the SEC
Reporting significant changes to the public

Our Services at Mercurius include:

Audit Report on Internal Controls by the Independent Auditor (Section 404)
Attestation Report on Internal Control (Section 404)

12. What is the role of independent auditors in SOX compliance?

In General, Role of independent auditors in SOX compliance includes:

checking internal controls
providing unbiased assurance on financial reporting
highlighting risks test processes
report deficiencies
help management to address issues

Their oversight will enhance stakeholder confidence through the transparency, regulatory adherence, and reliability of the financial statements.
At Mercurius, we empower entities aiming for SEC registration, ensure significantly reduced turnaround times, and offer seamless and efficient services to navigate the complexities of SEC regulations, which is particularly beneficial for new companies as well.