Edspira

Required Audit Reports for Companies in the United States

The video explains audit reporting requirements for U.S. companies, distinguishing SEC‑reporting entities from private firms, and outlines the filing obligations under the Securities Exchange Act and Sarbanes‑Oxley. SEC filers must include audited income statement, balance sheet, and cash‑flow statement in their 10‑K or 20‑F. Large accelerated and accelerated filers must also provide management’s internal‑control report (Section 404A) and an auditor’s opinion on those controls (Section 404B). Non‑accelerated filers only need management’s narrative; the auditor’s control opinion is optional. Smaller reporting companies, emerging growth companies, and newly public firms enjoy further exemptions. The presenter illustrates the rules with Instacart’s filings. Its first 10‑K (March 5 2024) contained a single auditor opinion on the financial statements, reflecting the newly public exemption. By the second 10‑K (Feb 28 2025), PwC issued dual opinions and referenced management’s internal‑control report, demonstrating the transition to integrated audit requirements. Understanding these thresholds is critical for CFOs, auditors, and investors, as non‑compliance can trigger SEC enforcement and affect capital‑raising. The tiered framework also influences audit‑firm planning and cost structures for companies transitioning from private to public status.