Audits for initial public offering (IPO) preparation
We, at the BDO Toyo & Co. IPO Support Office, answer a wide range of inquiries from companies looking to undertake an IPO and provide them with support to enable an ideal IPO in cooperation with various IPO stakeholders such as securities markets, managing underwriters, and venture capitals. As an audit firm and a guardian of a fair capital market, we respond to the need to enhance audit quality control in light of the frequent occurrence of accounting fraud in recent years. We do so by providing companies aiming for an IPO with appropriate advice during the pre-IPO audit period to ensure sound capital market operation. In case companies aiming for an IPO implement various management strategies such as M&A and global market expansion, we provide support during the process by leveraging BDO networks and functions. The BDO Toyo & Co. IPO Support Office believes that the importance of open innovation will increase significantly in line with social changes and thus full-scale industry, government, and academia collaboration will be necessary. Against this backdrop, we will provide services to support frameworks to promote open innovation in various scientific fields in the future.
Financial statements audit reports for the last two fiscal years are required when companies apply to be a listed one. In order to provide an audit opinion, it is necessary to validate the balance sheet at the beginning of the two fiscal years.
Therefore, when companies plan to pursue an IPO, it is generally appropriate to seek support from audit firms about three years before they wish to carry it out. We recommend companies pursuing an IPO to seek advice from audit firms as early as possible.