Rocky Point Brewery (RPB) filed an initial public offering in January 2018. RPB engaged Olsen & Alain, CPAs, (O&A) in 2015 to keep the books and prepare monthly and annual financial statements (while the company was privately held), and terminated those services in December 2018. Under SEC and PCAOB rules, could RPB engage O&A to be their auditors now that it is a public company? a. Yes, because the prohibited nonaudit services were performed before the period of professional engagement. b. Yes, but only if O&A rescinds any indemnification language existing in their nonaudit engagement letters. c. No, because the prohibited nonaudit services were performed during the period covered by the financial statements. d. No, but only if the fees O&A received from these engagements exceeded five percent of the firm's annual revenues.
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Rocky Point Brewery (RPB) filed an initial public offering in January 2018. RPB engaged Olsen &...
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