Small public company audits
SESGLO audits smaller reporting companies and other small public companies under PCAOB standards, with the signing partner involved from planning to issuance. You get scope, fixed fee and a week-by-week timeline in writing before fieldwork begins.
A large share of SEC registrants are small companies. Many find that large audit firms have little appetite for their engagement, while some small firms lack the capacity to meet quarterly deadlines. We work with:
Under Exchange Act Rule 12b-2, a company is a smaller reporting company if its public float is below $250 million, or if its annual revenues are below $100 million and its public float is below $700 million (or it has none). The accelerated filer definition covers companies with a public float of $75 million or more but below $700 million. Since the 2020 amendments, it excludes companies that qualify as SRCs under the revenue test. That distinction determines whether you need an auditor's ICFR attestation.
SRCs may prepare their financial statements under Article 8 of Regulation S-X. Rule 8-02 requires audited balance sheets as of the end of the two most recent fiscal years, and audited statements of comprehensive income, cash flows and changes in stockholders' equity for each of those two years. Larger filers generally present three years of income and cash-flow statements. We audit under PCAOB standards, communicate with your audit committee as PCAOB standards require, and include critical audit matters (CAMs) in the report where they apply.
Every Form 10-Q needs an interim review before filing under Rule 10-01(d) of Regulation S-X. We perform these reviews under PCAOB AS 4105, using what we learn in the annual audit. See 10-Q reviews.
Item 308 of Regulation S-K generally requires management's annual report on internal control over financial reporting, with a transition period for newly public companies. The auditor's attestation under Item 308(b) (SOX 404(b)) does not apply to companies that are neither accelerated nor large accelerated filers. Even so, our audit takes internal control into account and we report significant deficiencies and material weaknesses we identify to the audit committee. If your filer status changes, see SOX 404 and ICFR audits.
Note: In May 2026 the SEC proposed replacing the current filer categories with two main ones, large accelerated filers and non-accelerated filers. The proposal would raise the large accelerated filer threshold to $2 billion and give all non-accelerated filers scaled disclosures and the 404(b) exemption. It was still a proposal when this page was last reviewed. We will reflect any final rule in your engagement plan.
For every issuer audit report, we file Form AP with the PCAOB. It names the engagement partner and discloses other accounting firms that took part and their share of audit hours. Under the PCAOB's rules, Form AP is due 35 days after the report is first included in an SEC filing, or 10 days for an IPO. Anyone can search Form AP data in PCAOB AuditorSearch.
This is an illustrative first-year plan for a calendar-year non-accelerated filer (Form 10-K due in 90 days, Form 10-Q in 45 days). Your actual dates will be confirmed in your written proposal.
Scoping call, independence checks under SEC Rule 2-01 and PCAOB Rule 3520, and a fixed-fee proposal to the audit committee.
Predecessor communications if you are changing firms, the engagement letter and the document request list.
AS 4105 review, completed before the Form 10-Q is filed.
Risk assessment, understanding of controls and early work on complex areas.
Fieldwork, audit committee communications, Form 10-K review and report issuance, followed by Form AP.
Your fee is fixed and agreed in writing before fieldwork starts. It mainly depends on:
For more detail, see how we price.
Before you engage any firm, check its PCAOB registration, read its inspection reports and review the Form AP data for its current clients. Our guide on how to verify a PCAOB-registered auditor explains how. Then ask the questions below.
At SESGLO, the signing partner is involved from planning to issuance, and you can reach them directly.
Your proposal includes a written, week-by-week timeline covering the 10-K and each 10-Q. We reply to proposal requests within one business day.
The fee is fixed and agreed in writing before fieldwork, based on a defined scope.
Our English and Spanish engagement teams work remotely with U.S. issuers and their Latin American subsidiaries.
We are the PCAOB audit practice of Asesoria Global (PCAOB Firm ID 7184). Read about our quality control system, or write to info@sesglo.com.
FAQ
Under Exchange Act Rule 12b-2, a company is a smaller reporting company if its public float is below $250 million, or if its annual revenues are below $100 million and it has no public float or a public float below $700 million. Status is determined each year, with public float measured as of the last business day of the most recently completed second fiscal quarter.
Only if it is also an accelerated or large accelerated filer. Item 308(b) of Regulation S-K exempts companies that are neither, and after the 2020 amendments, companies that qualify as smaller reporting companies under the revenue test are excluded from the accelerated filer definition. Management's own ICFR report under Item 308(a) is still required, after the transition period for newly public companies.
Search the PCAOB's AuditorSearch database. Form AP, filed by the audit firm for each issuer audit report, names the engagement partner and discloses other accounting firms that took part, with their share of total audit hours. The basic filing deadline is 35 days after the report is first included in an SEC filing, or 10 days for an IPO registration statement.
Under Section 104 of the Sarbanes-Oxley Act, a registered firm that regularly issues audit reports for 100 or fewer issuers must be inspected at least once every three years. Firms with more than 100 issuer clients are inspected every year. Inspection reports are published on the PCAOB website, and audit committees should read them before engaging a firm.
In May 2026 the SEC proposed a new filer-status framework with two main categories: large accelerated filers and non-accelerated filers. The proposal would raise the large accelerated filer threshold to $2 billion and give all non-accelerated filers scaled disclosures and the 404(b) exemption. As of this page's review, it remained a proposal. Current rules apply until a final rule takes effect.
Small public companies often have complex equity, convertible debt, going-concern questions and a lean finance team. These issues need a decision from the person who will sign the opinion, not a message passed along a chain. Partner access shortens the time to resolve technical questions and lowers the risk of surprises close to the filing deadline.
Keep reading
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