1、2022 IPO materialweakness study 2Document Classification:KPMG Confidential 2022 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.Al

2、l rights reserved.2022 IPO material weaknesses studyBackgroundAll MWs were identified in S-1 filings.These numbers do not include shelf registration,terminated IPOs,or IPOs that do not trade on exchangesThe purpose of our research was to understand the challenges related to internal controls over fi

3、nancial reporting companies faced at the time of their initial registration for new securities.Our scope included IPOs(including SPAC transactions)for U.S.companies listed on the NYSE or NASDAQ(excluded foreign private issuers)that closed between 1/1/2021 and 12/31/2021.There were 340 closed IPOs an

4、d 169 SPACs that met these criteria during 2021.Of the 137 IPOs that disclosed material weaknesses,only 12 were noted as having been remediated prior to the filing.Of the 102 SPACs that disclosed material weaknesses,only 2 were noted as having been remediated prior to the filing.Of the total data,13

5、7 traditional IPOs(40%)and 102 SPACs(60%)disclosed material weaknesses in their S-1/S-1A filings.Source:Audit Analytics MW S-1 data through 12/31/21.3Document Classification:KPMG Confidential 2022 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG global organization of

6、independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Summary of material weaknesses reported by recent traditional IPOs*Material weaknesses reported were often the result of more than one overlapping issue/challenge.Is