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How do you choose a PCAOB auditor for a first-time public company?
Choose a PCAOB-registered firm with experience auditing small SEC reporting companies in your industry and the capacity to meet your deadlines. We usually narrow the choice to a few firms, or simply tell the client which one to use. The wrong auditor is one of the most common causes of delay. Experience with small public companies matters more than a big name.
Joel Arberman, Meraki Partners · Reviewed October 2026. Based on 17 companies taken public since 1999: 11 by direct listing, 4 by reverse merger and 2 by IPO.
Does the auditor have to be PCAOB-registered?
Yes. Financial statements filed with the SEC must be audited by a firm registered with the Public Company Accounting Oversight Board. OTCQB requires it as well.
What should we look for?
- Experience with small SEC reporting companies and with your industry
- A team with capacity during busy season
- Clear fees for the initial audit and quarterly reviews
- No independence conflicts, such as having prepared your books
Can our current CPA be the auditor?
Only if the firm is PCAOB-registered and hasn't prepared your financial statements or provided other services that impair independence. Usually the bookkeeping or accounting firm and the auditor are different firms.
Is a Big Four firm worth it?
Rarely for a small company. Their fees are far higher, and the work isn't more useful at this stage. Costs depend on the providers you choose.
How do we keep the audit on schedule?
Have the books closed and reconciled before fieldwork, answer requests quickly, and agree on the timeline up front. Management focus and organized records are what keep audits on time.
Related questions
Want to talk it through?
Tell us where you are, and we’ll set up a first conversation about whether going public belongs in your plan and what it would take. If it isn’t right for you, we’ll say so.