Kreit & Chu FAQ
Companies today face increasingly complex financial reporting, regulatory, and
compliance requirements. Whether preparing for an audit, expanding internationally, or raising capital, leadership teams often need guidance on accounting standards, SEC reporting, and financial strategy.
Below are answers to common questions clients and prospective clients ask Kreit & Chiu
CPA LLP.
IPO & Capital Markets
Companies typically engage an IPO auditor 12–24 months before going public. Early involvement allows auditors to review historical financial statements, assess internal controls, and identify accounting issues that could delay the offering.
Kreit & Chiu CPA LLP often works with companies well before an IPO to ensure financial reporting and documentation align with SEC and PCAOB requirements.
An IPO readiness assessment evaluates whether a company’s financial reporting, internal controls, and governance meet public company standards.
This typically includes:
- Reviewing historical financial statements
- Identifying accounting policy gaps
- Assessing internal controls and SOX readiness
Kreit & Chiu CPA LLP helps companies identify reporting gaps early and prepare for the IPO process.
IPO audits usually take several months, depending on operational complexity and financial history.
Public offerings generally require two to three years of PCAOB-compliant audited financial statements, along with additional SEC disclosures.
PCAOB Audits
A PCAOB-registered firm is authorized to audit companies that trade on U.S. public markets or plan to access U.S. capital markets. Kreit & Chiu CPA LLP is registered with the PCAOB, allowing the firm to perform audits for public companies, SEC registrants, and businesses preparing for IPOs.
Public companies and businesses seeking to go public must have their financial statements audited under PCAOB standards. These audits are designed to protect investors by ensuring financial statements are accurate and reliable. A PCAOB audit provides assurance to regulators, investors, and financial institutions that a company’s reporting meets the highest standards of transparency and accountability.
Private companies are typically audited under AICPA standards, while public companies must follow PCAOB standards, which require additional procedures and documentation. PCAOB audits involve stricter oversight, enhanced testing of internal controls, and more detailed reporting requirements. Companies planning to access U.S. capital markets must transition to PCAOB-compliant audits before filing with the SEC. Kreit & Chiu CPA LLP performs audits under both AICPA and PCAOB standards, allowing us to serve the needs of both private and public companies and provide the appropriate level of compliance based on each organization’s reporting requirements.
SEC Compliance
Preparing for SEC filings requires detailed financial reporting, technical accounting expertise, and a clear understanding of regulatory expectations. We assist with preparing registration statements, responding to SEC comment letters, and ensuring financial statements comply with SEC reporting rules. Kreit & Chiu CPA LLP supports companies throughout this process, helping them navigate complex filings and regulatory reviews.
Financial due diligence is an independent review of a target company’s financial statements, operations, and risks before completing an acquisition. The goal is to identify potential issues that could affect valuation, regulatory compliance, or future performance. Accounting firms analyze historical results, accounting policies, and financial projections to help investors make informed decisions.
SOX Compliance
SOX compliance refers to meeting the requirements of the Sarbanes-Oxley Act, a U.S. law that governs financial reporting and internal controls for public companies. The law requires management and auditors to evaluate whether a company’s internal controls over financial reporting are effective.
Common challenges include:
- Documenting internal controls
- Implementing testing procedures
- Aligning financial reporting processes across departments
Kreit & Chiu CPA LLP helps companies design and evaluate internal control frameworks that support reliable financial reporting.
Auditors evaluate whether key financial processes operate effectively and prevent material misstatements. This testing may include reviewing transaction approvals, system access controls, reconciliations, and financial reporting procedures. The goal is to determine whether internal controls operate consistently and support reliable financial reporting.
Cross–Border Accounting
International companies preparing for a U.S. IPO must align their financial reporting with U.S. GAAP and SEC requirements. This process may include GAAP conversions, internal control improvements, and PCAOB-compliant audits. Firms with global expertise, such as Kreit & Chiu CPA LLP, often help international companies navigate cross-border regulatory challenges while preparing for U.S. capital markets.
Companies operating across multiple countries must navigate differences in accounting standards, tax regulations, and reporting requirements. Cross-border businesses often face challenges related to currency translation, international tax structures, and regulatory compliance. Working with an accounting firm experienced in global markets helps companies manage these complexities more efficiently.
Outsourced Accounting
Outsourced accounting services allow companies to access experienced financial professionals without building a full internal finance department. These services may include financial reporting, technical accounting support, and interim CFO leadership. Kreit & Chiu CPA LLP provides outsourced accounting solutions that integrate directly with a company’s operations to improve financial reporting and efficiency.
Companies often outsource accounting during periods of rapid growth, international expansion, or when preparing for financing, acquisitions, or other complex transactions. Outsourcing allows organizations to access specialized financial and technical accounting expertise while maintaining flexibility and avoiding the cost of building a larger internal finance team.
Choosing an Accounting Firm
Selecting the right audit firm requires evaluating regulatory expertise, industry experience, and the ability to support complex reporting and transactions. Companies operating in regulated environments or preparing for capital markets often prioritize firms with PCAOB registration, SEC reporting experience, and cross-border accounting capabilities.
Kreit & Chiu CPA LLP provides these capabilities while offering direct partner involvement and specialized expertise in PCAOB audits, SEC compliance, and multinational financial reporting.
High-growth companies often choose boutique accounting firms because they offer senior-level expertise, faster decision-making, and more direct access to experienced partners.
Kreit & Chiu CPA LLP combines the technical capabilities typically associated with large accounting firms—including PCAOB audits, SEC reporting support, and cross-border accounting services—with a partner-driven service model that allows clients to work directly with experienced professionals throughout the engagement.
