Downey & Company is a PCAOB registered firm that specializes in Regulation A+ (Tier I and II) and Crowdfunding audits. Choosing a CPA firm who has experience in equity crowdfunding auditing, the industry relationships to assist you in networking, and the sound advice to accelerate your business’ goals to the next step is key to your business’ success.
Downey & Company’s audit process is timely, efficient, streamlined and at a competitive rate. If you are not sure what type of audit you need, information about auditing requirements for Title III Equity Crowdfunding and Title IV (Tier I and II) Regulation A+ Crowdfunding are explained below.
With the creation of the JOBS Act in 2012, the SEC allows entrepreneurs to go public and advertise their search for equity and to raise money from unaccredited investors. Title III Equity Crowdfunding allows start ups to raise up to $1 million in a 12 month period. Title III Equity Crowdfunding requires a reviewed financial statement by a CPA for funds raised exceeding $100,000, and an audit by a CPA for funds raised exceeding $500,000.
For businesses looking to raise more than $1 million, they can issue a miniature IPO under Title IV Regulation A+ Crowdfunding. Reg A+ is a type of offering which allows private businesses to raise up to $50 million from the public by issuing shares. Businesses considering raising capital via Reg A+ first need to file with the SEC and get qualified to launch their offering. The cost associated with a Reg A+ offering is much lower than a traditional IPO and the disclosure requirements are less burdensome. A miniature IPO falls in to one of two tiers, depending on the amount of capital sought, and as such has different auditing requirements as highlighted in the table below.
| Tier I | Tier II | |
| Maximum Offering Size | $20 million | $50 million |
| Investor Types | Accredited and unaccredited | Accredited and unaccredited |
| Individual Investment Limits | None | 10% of the greater of annual income or net worth as self-reported |
| Time Period | 12 months | 12 months |
| Advertising/General Solicitation | No restrictions | No restrictions |
| Financial Disclosures | Accountant reviewed financials | Audited financials–compliance with Reg S-X |
| State Preemption | No state coordinated review with SEC filings | Yes |
Leverage Downey & Company’s expertise in the equity crowdfunding auditing process to ensure an efficient and prompt audit for your business.
Please contact Jamie Downey at JMDowney@DowneyCoCPA.com or at 800-849-6022, if you have questions or would like a quote for an audit.
