SPAC Audits Were Hit-or-Miss, Oversight Board Inspections Find

Nearly half of the audits of special purpose acquisition companies inspected by the US accounting oversight board fell short of basic standards, the regulator said Wednesday.

The Public Company Accounting Oversight Board reviewed 115 audits for SPACs and companies created through the merger of a SPAC with a private operating company as part of its reviews of US auditors over the past two years. Inspectors found issues in 53 audits.

• In some cases, auditors missed material misstatements and failed to test assumptions that affected the valuation of certain liabilities known as warrants. Other missteps involved auditor independence violations and not ...