Tiered financial disclosure. The minimum level of financial disclosure required by the company depends on the amount of money being raised or raised by the company in the prior 12 months
- $124,000 or less – financial statements and specific line items from income tax returns, both of which are certified by the principal executive officer of the company unless financial statements reviewed or audited by an independent public accountant and the accountant’s review or audit report, as the case may be, are otherwise available.
- $124,000.01 to $618,000 – financial statements reviewed by an independent public accountant and the accountant’s review report unless financial statements audited by an independent public accountant and the accountant’s audit report are otherwise available.
- $618,000.01 to $1.235 million – if first time crowdfunding and audited financial statements are not available, then financial statements reviewed by an independent public accountant and the accountant’s review report, otherwise financial statements audited by an independent public accountant and the accountant’s audit report.
- More than $1.235 million (up to the maximum aggregate of $5 million) – financial statements audited by an independent public accountant and the accountant’s audit report.
An audit provides a level of scrutiny by the accountant that is higher than a review.