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PCAOB Audit: Do I Need It?

Post author By admin
Post date August 2, 2022

PCAOB Audit: Do I Need It?

A non-profit body called the Public Company Accounting Oversight Board (PCAOB) is in charge of policing auditors of publicly listed companies.

PCAOB’s main goal is to reduce audit risk. The U.S. Securities and Exchange Commission-registered public corporations, brokers, and dealers are subject to PCAOB oversight of their audits (SEC).

It is important for businesses, accounting services, and audit firms in Malaysia to keep up with the changing requirements and instructions of PCAOB to provide the best services and comply with the industry standards.

There has been a significant update in the PCAOB requirements for auditing accounting practice related to professional auditing procedures and fair value measurements.

The usage of accounting estimates and fair value measurements is also rapidly increasing in financial reporting, so accounting services in Malaysia should pay special attention to these requirements to provide maximum accuracy and efficiency.

It is also important for the auditors to evaluate or oversee the work of the specialists to minimize risks and remove errors from accounting procedures. This article explores these changes and the requirements of PCAOB in detail.

Fair Value Measurements

According to the PCAOB, the new, single standard establishes a consistent, risk-based methodology. It underlines the necessity for auditors to use professional scepticism when examining accounting estimates, particularly taking into consideration any managerial bias.

Moreover, the new standard also offers further guidance on how to handle specific issues specific to auditing the fair values of financial instruments, such as the use of price data from third parties like pricing services, brokers, or dealers.

Auditing the Specialists

The PCAOB said its revisions improve the standards for assessing a business expert’s work, whether that expert is hired or retained by the firm.

The PCAOB said that the modifications are intended to boost audit attention in areas where a specialist is engaged and match the relevant requirements with the PCAOB’s risk assessment criteria.

The changes also utilize a supervisory strategy for professionals who are both hired by and engaged by auditors. Two current auditing standards, AS 1105, Audit Evidence, and AS 1201, Supervision of the Audit Engagement, were modified by the PCAOB.

The new AS 1210, Using the Work of an Auditor-Engaged Specialist, renamed and replaced AS 1210, Using the Work of a Specialist.

The purpose of such amendments to the PCAOB rules is to significantly improve the quality of PCAOB auditing procedures and bring greater transparency to the global audit and accounting standards.

Requirements of the PCAOB Audit

Your Tier 2 Regulation A offering is exempt from PCAOB audits, and, of course, Tier 1 offers are also exempt from audit requirements. However, listing on the top two exchanges requires PCAOB level audits (NASDAQ, NYSE).

For a Reg A+ IPO to the major markets, the offering begins as a straightforward Reg A+, but shortly before the offering is scheduled to list, the structure of the Reg A+ Offering Circular is altered (the content is left unchanged) to resemble an S-1.

Companies must submit a PCAOB audit for the most recent quarter before listing to participate in these IPOs. And the securities lawyer makes a number of files after the listing to effectively upgrade the SEC filings to those of a full reporting public business on a significant exchange.

You must carry out the audit in line with generally accepted auditing standards using the help of an audit firm in Malaysia unless the audit falls within the PCAOB’s purview. The audit may also be carried out in line with PCAOB standards but not only in compliance with those standards.

The PCAOB decides whose financial statement audits are within its purview, including those of issuers and non-issuers, brokers and dealers registered with the SEC.

The audit does not come within the PCAOB’s purview only because a regulator (other than the PCAOB) demands that it be carried out in line with PCAOB standards.

As a result, even when the regulator—for instance, the CFTC—mandates that an audit be carried out in accordance with PCAOB standards, the audit must also be carried out in compliance with GAAS.

The auditor shall utilize the type of report required by the PCAOB standards, modified to specify that the audit was also carried out in compliance with GAAS when referencing the PCAOB standards in addition to GAAS in the auditor’s report.

In Closing

The bottom line is that PCAOB and other such relevant accounting and auditing authorities play an integral role around the world in monitoring audit firms and maintaining investors’ and the public’s trust in accounting and auditing procedures.

Such rules and regulations allow audit firms in Malaysia to operate within a standard framework and offer reliable services.

Tags PCAOB Auditors

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BPO vs. Shared Services: What Is the Difference?

Post author By admin
Post date August 2, 2022

BPO vs. Shared Services: What Is the Difference?

Business Process Outsourcing (BPO) vs. shared services has always been a long debate when it comes to identifying their differences and choosing the best option among them.

Overall, both outsourcing and shared services are highly popular trends, allowing companies to make the most of their working procedures and maximize productivity. Most professional accounting firms and services in Malaysia offer both BPO and shared services.

Therefore, the goal of this article is to differentiate between BPOs and share services in detail to help you choose the best option.

What is Business Process Outsourcing (BPO)?

BPO is often seen as more effective since it uses superior systems and procedures. Since it is typically headquartered overseas, labour costs and overheads may be far cheaper than if this service were provided domestically.

Due to the knowledge of the resources inside these companies, outsourcing is often executed more swiftly and efficiently.

What Are Shared Services?

If your demands are unique, shared services can be a better option. A shared services model could be the best option if you have particular needs and non-standard procedures since BPO is typically one-size-fits-all.

The deployment of a shared services function inside a company, however, may be laborious and slow. Most often, this is due to a lack of internal expertise in providing this, and the service will fail if the systems, procedures, and data are not clear and effective.

Employee engagement might suffer greatly if the service is unsuccessful, and if users aren’t motivated to utilize it, they’ll fall back into their previous routines, making the service worthless.

Since thorough training is required to maximize the efficiency of the shared services, it is typically used by medium and large-scale companies.

Differences between BPO and Shared Services

BPO entails hiring an outside provider with the necessary resources and abilities to do the task you need to be done on their behalf.

Conversely, shared services relate to the establishment of a single, independent business unit to provide services concurrently needed by several divisions of an organization but which were previously provided “on-site” individually.

Since better systems, procedures, and technology often enable the outside vendor to execute the job more quickly and to a higher level, BPO is generally credited with delivering higher productivity.

However, if you already have the necessary time, tools, and expertise in-house, switching to an outsourced model may not be cost-effective given the money you’ll save and the higher quality of work you’ll get.

While it’s true that outsourcing often happens more rapidly, if the vendor’s abilities, outlook, and behaviour don’t align with the goals of your organization, the outcomes might be subpar or even ineffective.

Keeping these factors in mind, in general, you should explore shared services if you need a customized solution that can be implemented gradually.

On the other hand, BPO can be right for you if you need a general solution to fulfil your general requirements without paying significant attention to the internal working procedures of an organization.

In Summary

If your requirements entail standard processes that do not involve the internal factors of an organization, then BPO could be the perfect solution for you. On the other hand, if you want to consider unique requirements and allocate time and resources accordingly, then you should consider shared services.

Whether you want to implement BPO or shared services, you should consider factors like the end goal of an organization, the overall management engagement and support, and internal processes to arrive at the best option.

You can also consult professional accounting services in Malaysia to get help in exploring these differences in more detail and implementing BPO and shared services according to your specific requirements and business processes.

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SPAC: Helpful Tips for Investors to Get Started

Post author By admin
Post date August 2, 2022

SPAC: Helpful Tips for Investors to Get Started

SPACs, or Special Purpose Acquisition Companies, have recently attracted a lot of interest from Wall Street, business boardrooms, and the media.

SPACs provide an alternative to conventional IPOs, have been available for decades in various versions and have become quite popular in various countries, including Malaysia, among pre-IPO advisory and accounting services.

Therefore, it is important for investors to be familiar with SPAC in order to make reliable decisions.

Goals of SPACs

SPAC acquisitions of private companies are popular because they are flexible and hassle-free than initial public offerings (IPO) for companies looking to go public.

The financial markets’ openness to new IPOs fluctuates according to the state of the economy and investors’ willingness to take on risk. A reverse merger enables a private company to go public after the IPO window has ended since a SPAC is already publicly traded.

Because their founders and other important shareholders may sell a larger proportion of their own shares via a reverse merger than they might with an initial public offering, SPAC purchases are also appealing to private companies.

The lock-up periods for selling newly public shares that are necessary for initial public offerings may likewise be avoided by private company founders.

Working of SPACs

SPACs use initial public offerings to obtain money for acquisitions. A Class A common equity share and a warrant make up the conventional SPAC IPO structure. A warrant allows its owner to purchase more shares of stock at a predetermined price in the future.

There is a possibility to exercise the warrants and get more common stock shares when the acquisition target is found and the deal is completed. The warrant is split off and trades independently from the SPAC shares a few weeks after the IPO is finished.

The SPAC management team is looking for a suitable acquisition target after the IPO. Since the IPO funds are invested in government bonds, the SPAC stock should trade close to that price throughout this time; nevertheless, during market selloffs, SPAC stocks are susceptible to falling below the IPO price.

SPACs may also trade above their IPO price if investors think management will find a strong candidate for an acquisition. SPACs have a certain amount of time to choose an acquisition target and complete the transaction. Typically, the phase lasts for two years.

The funds in the escrow account are refunded to the shareholders if the SPAC sponsor is unable to consummate an acquisition within the allotted time frame.

The SPAC sponsors will formally declare any possible target companies they find. The announcement date is the day when the general public is informed of the proposed purchase.

Risk Factors

Investing in SPACs is inherently hazardous since there is no assurance that the transaction will be successful. The risk is increased because SPAC acquisitions have less regulatory overhead than a traditional IPO.

Even though they may be nothing more than educated estimates, SPAC owners are permitted to offer forecasts of future profits. It’s crucial to do your own study as a consequence.

Since you are essentially investing in several SPACs at once with SPAC ETFs, the risk is fairly spread out.

However, you should still investigate how many SPACs the ETF owns, how evenly they are distributed among various industries, and the proportion of pre-deal SPACs to those that have already gone through the reverse merger process, because investing in SPACs prior to the merger has the potential to yield the highest returns.

It is important to consider all such risk factors when you are in the process of forming SPACs and going public with your company.

Market Saturation

The SPAC market is crowded, there aren’t many good targets left, and performance is declining, according to some experts. In 2021, SPACs underperformed both conventional IPOs and the entire stock market.

By the end of 2021, more than 60% of SPAC owners wanted their money back, prompting experts like Sonders to speculate that SPACs would no longer be a desirable investment.

In Closing

It is obvious that stock investing involves risk, but investing in SPACs also adds a new degree of excitement. Of course, a greater risk often offers a greater return.

All in all, as an investor, it’s important to do your homework, balance your portfolio, and educate yourself before investing in a SPAC stock or SPAC ETF.

Tags SPAC, Special Purpose Acquisition Company

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What is the PCAOB, and what does it do?

Post author By admin
Post date July 1, 2022

What is the PCAOB, and what does it do?

The Public Company Accounting Oversight Board (PCAOB) is a nonprofit corporation established by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies. Its mission is to protect investors and enhance the accuracy and reliability of corporate disclosures through stringent oversight of audit practices. One of the PCAOB’s key responsibilities is registering, inspecting, and disciplining PCAOB auditors who audit public companies in accordance with U.S. federal securities laws.

History of PCAOB

As part of the Sarbanes-Oxley Act (SOX), which was implemented in reaction to a number of accounting crises (such as Enron and Worldcom), the PCAOB was established by Congress in 2002 to better regulate the auditing sector.

Before the PCAOB was established, the auditing industry was self-regulated. But in the early 2000s, it seemed that this strategy was falling short with the public.

The Securities and Exchange Commission (SEC), in charge of safeguarding investors and preserving the US securities markets, receives reports from the PCAOB. The SEC is also responsible for overseeing the PCAOB auditors.

The Role of PCAOB in Audit Oversight

PCAOB conducts regular inspections of registered public accounting firms to assess compliance with professional standards, laws, and regulations. This includes a detailed review of audit engagements performed by PCAOB auditors, especially those serving clients listed on U.S. stock exchanges. These inspections aim to promote consistent audit quality and accountability among PCAOB-registered auditors operating globally.

What is PCAOB and Why Does it Matter for Malaysian Audit Firms?

For Malaysian audit firms providing services to U.S.-listed companies or their subsidiaries, being recognized by the PCAOB is essential. PCAOB auditors must adhere to high standards of audit quality, including the adoption of robust internal quality controls and proper documentation of audit work. Failure to comply may lead to sanctions, fines, or the revocation of registration.

At ShineWing TY TEOH, we support businesses with cross-border reporting obligations by aligning our practices with PCAOB expectations. Our team includes experienced PCAOB auditors who understand the nuances of U.S. GAAP, PCAOB auditing standards, and SEC requirements.

Registration and Compliance with PCAOB

Objectives of PCAOB

PCAOB has well-documented goals and objectives that serve as an inspiration to many auditors and accountants all over the world, including audit firms in Malaysia. Following are the four main objectives of PCAOB:

Register public accounting firms that prepare audit reports for brokers, dealers, and issuers.
Adopt modern auditing standards for quality control, ethics compliance, and achieving independence.
Inspect the audit and quality control systems of the registered firms.
Investigate and discipline the registered accounting firms for violating the law, rules, and accounting standards.

Let’s look at these core activities of PCAOB in detail.

1. Registration

Public accounting companies are registered with the PCAOB. The PCAOB has to be aware of the businesses to monitor them. All entities that conduct financial audits of publicly traded corporations are required to register with the PCAOB.

2. Auditing Standards

The professional auditing standards that licensed auditing companies must follow are set by the PCAOB board. These guidelines are used to keep an eye on accounting companies. The AICPA established guidelines before the PCAOB.

The PCAOB rearranged the standards to combine them into a single, integrated numbering system, added its own, and essentially embraced the AICPA’s auditing standards. For a complete list of all the standards, please visit the PCAOB website.

The public, not the customer, should be a CPA or CPA firm’s main priority. To prevent CPAs from losing their independence, the Code specifies rules. It offers advice, as well as illustrations of interactions and pursuits that pose a danger to one’s real or perceived independence.

An auditor having financial ties to a client or close connections to individuals holding important positions inside the client’s business serves as examples.

The Code describes the steps a company or a person may take to remove or lessen risks to independence. So that businesses can prove their attempts to maintain independence, activities made to preserve independence should be recorded.

Here is a link to the professional Code of conduct for the AICPA. Ultimately, PCAOB auditors have to enforce the Code to maintain auditing standards throughout the board. Accounting services in Malaysia also follow a similar code of conduct.

3. Inspection

The PCAOB conducts inspections to assess how well businesses adhere to the requirements specified above. The PCAOB focuses its inspections on businesses that annually audit 100 or more public corporations.

At least once every three years, the PCAOB inspects businesses that audit fewer than 100 publicly traded corporations. The inspections will concentrate on locations that are thought to be at greater risk, according to the PCAOB.

Internal control over financial reporting, identifying and mitigating the risks of substantial misstatement, and accounting assumptions are some of these topics.

The PCAOB chooses audit engagements for the assessment using a risk-based methodology. The purpose of these inspections is to ascertain if an accounting company’s audit methods and documents include mistakes and whether the audit firm has suitable quality controls in place.

Audit shortcomings are noted in the inspection report posted on the PCAOB website if the PCAOB finds insufficient evidence to support the auditor’s assessment.

4. Enforcement

If the PCAOB auditors find that any major violation occurred as a consequence of the inspections, an enforcement hearing may be held. The PCAOB has the authority to penalize companies and individual auditors.

As a recent example, the SEC/PCAOB fined KPMG $50 million for malfeasance, including revising work documents to reduce the possibility of receiving inspection results from the PCAOB.

The Role and Functions of PCAOB

The PCAOB carries out its mission through the following core functions:

1. Auditor Registration

Public accounting firms that audit publicly traded companies must register with PCAOB.

2. Inspections of Audits

Regular inspections ensure that audit firms comply with professional standards and legal requirements.

3. Enforcement and Disciplinary Actions

PCAOB has the authority to investigate audit firms and enforce disciplinary measures in case of non-compliance.

4. Setting Auditing Standards

The organization establishes auditing rules that firms must follow to maintain high-quality financial reporting.

Why PCAOB Compliance is Important for Businesses

For companies operating in industries requiring public financial reporting, PCAOB compliance ensures credibility, builds investor trust, and mitigates financial fraud risks.

Compliance with PCAOB auditing standards is particularly crucial for firms planning IPO listings, mergers, or attracting foreign investments.

Key Differences Between PCAOB and Other Regulatory Bodies

While the PCAOB plays a critical role in auditing, other regulatory bodies also oversee financial reporting, including:

SEC (Securities and Exchange Commission)

Oversees overall securities regulation and investor protection.

AICPA (American Institute of Certified Public Accountants)

Develops guidelines for private company audits.

IAASB (International Auditing and Assurance Standards Board)

Establishes international auditing standards used outside the U.S.

Recent Developments in PCAOB Regulations

Keeping up with regulatory changes is crucial for audit firms and publicly traded companies. Recent amendments to PCAOB standards include:

Stricter quality control requirements for audit firms.
Increased transparency and disclosures for public company audits.
Enhanced measures to detect and prevent fraud within financial reporting

How PCAOB Affects Malaysian and International Companies

Although PCAOB is a U.S.-based organization, its regulations impact multinational companies, including those in Malaysia, Singapore, and other ASEAN markets. Malaysian firms working with U.S.-listed corporations or engaging in cross-border financial transactions must adhere to PCAOB auditing standards.

How to Ensure PCAOB Compliance in Auditing

To meet PCAOB requirements, companies and auditors should:

1. Stay Updated

Regularly review PCAOB updates and amendments.

2. Enhance Internal Controls

Implement strong financial reporting controls to reduce audit risks.

3. Engage PCAOB-Registered Auditors

Work with audit firms that are PCAOB-compliant.

4. Conduct Pre-Audit Assessments

Identify potential compliance gaps before undergoing formal audits.

In Closing

Such rules and regulations allow audit firms in Malaysia to operate within a standard framework and offer reliable services.

ShineWing TY TEOH – Your Trusted PCAOB Audit Partner

Our firm is committed to audit excellence and regulatory compliance. We are proud to have a dedicated team of PCAOB auditors ready to assist public companies, multinational corporations, and subsidiaries in meeting the rigorous audit requirements imposed by U.S. regulatory bodies.

Whether you are preparing for your first PCAOB audit or need ongoing support, ShineWing TY TEOH offers tailored assurance services delivered by qualified and experienced PCAOB auditors. We help you navigate complex audit landscapes and ensure full compliance with PCAOB standards.

Tags PCAOB Auditors

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Special Purpose Acquisition Company (SPAC) vs. Initial Public Offering (IPO): What is the difference?

Post author By admin
Post date July 1, 2022

Special Purpose Acquisition Company (SPAC) vs. Initial Public Offering (IPO): What is the difference?

A lot of organizations that want to go public have the common question of whether merging with a SPAC is better than an IPO and what are the main differences between a Special Purpose Acquisition Company (SPAC) and an Initial public offering (IPO).

When Malaysian companies consider going public, two main options often come up: the traditional Initial Public Offering (IPO) and the newer Special Purpose Acquisition Company (SPAC) route. While both lead to a stock exchange listing, the journey, costs, risks, and outcomes differ significantly.

The benefits of both SPAC and IPO vary greatly from organization to organization. Private companies are likely to find more benefits in a SPAC merger, such as speed and price, but it has its own challenges as well.

This guide explains SPAC vs IPO in Malaysia, highlights key differences, and provides insights to help businesses, investors, and stakeholders make informed decisions.

What is Initial Public Offering (IPO)?

A typical approach for a business to receive capital from the general public is via an initial public offering (IPO).

An established business seeks to issue and sell shares on a public market via an IPO. There is already a corporation that is going public.

Typically, a company will operate on private funds to build its business strategy, product, and service (raised from founders, private investors, loans, and various other sources). However, the resources made accessible by private capital are often somewhat constrained.

A business may obtain capital from a large pool of prospective investors by issuing an IPO. Offering stock shares for sale on the open market achieves this.

The corporation itself sells its stock in this area, referred to as the main market. A business receives compensation for each share of stock sold on the open market.

Key points:

Requires approval from the Securities Commission Malaysia (SC).
Involves appointing underwriters, auditors, and advisors.
Often takes 12–24 months to complete.
Provides credibility, transparency, and access to capital.

What is a Special Purpose Acquisition Company (SPAC)?

Issuing an IPO is a traditional business practice. However, the concept of SPAC is relatively newer. SPAC is also known as the blank check company.

It became highly popular in 2019 and 2020. With a SPAC, you create a shell company that exists only on paper. The company will have a management team, a bank, and some initial funding.

Moreover, it involves going through the entire process of IPO readiness assessment and issuing the IPO in which the blank check company sells the shares to raise capital.

Since SPAC does not have significant assets or working operations, the disclosure process for a SPAC in an IPO is quick and efficient. Professional accounting firms in Malaysia can help companies prepare and execute both SPAC and IPO efficiently.

Another way to understand SPAC is to think of it as a publicly-traded buyout company that raises money through an IPO to gain a controlling stake in an organization. After going public, SPAC typically has about two years to acquire one or more companies.

Once a company is acquired by a SPAC, it goes public without paying for an IPO. Hence, it is a cost-efficient way of going public as all of the charges and underwriting fees are covered before the target company gets involved.

Key points:

Investors buy into the SPAC without knowing the target business upfront.
The SPAC has a limited timeframe (usually 24–36 months) to acquire a target.
If no acquisition happens, funds may be returned to investors.
Considered a faster but riskier route compared to IPO.

SPAC vs. IPO

It is evident that there are some distinct differences between SPAC and IPO. Experts have often criticized traditional IPO investors for having a short-term mindset that leads to mispricing and business inefficiencies. Such concerns are removed by SPAC.

Even though SPAC is cost-friendly, it has some serious risks as well. A major risk is that the investors have the right to withdraw their investors if they are not happy with the target company.

The management will identify the best acquisition, but if the investors change their minds later, it can be a significant loss.

A major reason behind the rising popularity of SPAC is that its value is linked to how much money is raised from investors. Therefore, it is less vulnerable to the fluctuating situations of the market. Investors also say that a recession can lead to greater buying opportunities for SPACs.

SPAC vs IPO: Side-by-Side Comparison

Factor	IPO (Initial Public Offering)	SPAC (Special Purpose Acquisition Company)
Timeline	12–24 months	6–12 months
Regulatory Approval (Malaysia)	Rigorous SC and Bursa Malaysia review	SPAC listed first, then seeks SC approval for acquisitions
Cost	High (underwriting, legal, accounting, marketing fees)	Moderate upfront, but dilution risk for investors
Risk	More predictable, due diligence required	Higher risk (uncertain target, market conditions)
Investor Confidence	Transparent financials disclosed before listing	Investors rely on SPAC sponsor’s reputation
Control	Founders may dilute ownership	SPAC sponsors often retain significant influence
Suitability	Established businesses with track record	Companies seeking quick access to public funds

Pros and Cons IPO vs SPAC

Advantages of IPO

Strong investor confidence
Transparency and corporate governance
Access to larger pools of capital

Disadvantages of IPO

Long preparation timeline
Expensive due diligence and regulatory compliance
High scrutiny from investors and regulators

Advantages of SPAC

Faster route to public listing
Flexibility in deal-making
Less burden on operating companies initially

Disadvantages of SPAC

Risk of misaligned expectations between sponsors and investors
Uncertainty over acquisition success
Potential share dilution

The Malaysian Context: SPAC vs IPO

Malaysia pioneered SPAC listings in Asia with several cases in the early 2010s (e.g., Hibiscus Petroleum).
However, regulators have since become more cautious, making SPAC approvals less common compared to IPOs.
IPOs remain the preferred choice in Malaysia due to investor confidence, transparency, and compliance with Bursa Malaysia rules.

FAQ About SPAC vs IPO

Is SPAC better than IPO in Malaysia?

Not necessarily. IPOs remain more common and trusted in Malaysia, while SPACs are faster but riskier.

How long does an IPO take in Malaysia?

On average, 12–24 months depending on readiness, financial audits, and SC approval.

What are the risks of SPACs?

Uncertainty of target acquisition, dilution of shares, and reliance on sponsors’ credibility.

Final Thoughts

Going public by launching an IPO or by merging with a SPAC are two of the most popular options for the majority of private companies. Ultimately, the choice depends on the type and scale of the business. Both IPO and SPAC have their own set of pros and cons.

For Malaysian companies:

IPO is best for businesses with a strong track record, aiming for long-term credibility.
SPAC may be considered by companies seeking speed and flexibility, but it carries greater risks.

The current business landscape supports SPAC, but it is highly possible that an IPO might be a better option for a company. Therefore, it is important to rely on experts like the accounting firm in Malaysia to conduct IPO readiness assessments to make the best choice.

At ShineWing TY TEOH, we guide businesses through both IPO readiness assessments and pre-IPO advisory services to ensure you choose the right path.

Tags ipo readiness assessment, pre ipo advisory, SPAC, Special Purpose Acquisition Company

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What is IPO (Initial public offering) readiness assessment?

Post author By admin
Post date July 1, 2022

What is IPO (Initial public offering) readiness assessment?

For a company to have an initial public offering (IPO), it will have to go through the process of extensive planning and analysis of various factors to ensure success before and after the IPO date.

This process can be quite overwhelming for companies, especially when they are not using professional accounting services in Malaysia.

However, pre-IPO advisory can make the entire process of IPO readiness assessment much easier and quicker. This article discusses various aspects of IPO readiness assessment.

Importance of an IPO Readiness Assessment

Whether you are planning for an IPO in the near future or just want to make long-term goals, preparing for it can be difficult.

However, a comprehensive IPO readiness assessment is useful in identifying the opportunities that are good for the business and minimizing the pressure on the organization’s management when the time for the IPO is near.

Companies well-prepared for an IPO in advance are likely to meet the investors’ requirements and make the IPO successful.

Following are the important five tips when it comes to efficient IPO readiness assessment:

Strong Leadership and IPO

A strong leader has to be in place for your IPO team. The chief financial officer (“CFO”), sometimes the head of business development or corporate finance, is given this responsibility in the majority of businesses.

An IPO steering committee is often created for bigger or more complicated IPOs. In order to drive the process, hit goals, communicate with stakeholders, and make crucial decisions, a strong IPO leader must be chosen. He serves as the point of contact both internally and internationally.

Role of Project Management

Identification of problems and monitoring of development via efficient project management is essential to success. Without this, it’s possible that one area of the company is unaware of what another is doing.

Successful IPOs use the proper resources to assist the IPO leader in developing the strategy, tracking progress, identifying problems, and maintaining the process. The IPO process often results in more work.

To complete routine work or carry out specialist duties, other resources may be considered. Organizations that work with professional accounting services in Malaysia can get advice from experts and complete the IPO process successfully.

Comprehensive IPO Readiness Assessment

The first step to a successful IPO is a thorough review of IPO preparedness. Big-picture concerns must be recognized to avoid surprises later. A questionnaire-based evaluation will assist in identifying the most important problems and knowledge gaps that need to be filled.

A corporation will have a clear road map for getting there after the readiness assessment, with suggestions and workstreams prioritized, responsibilities allocated, and a timeline for correction. As a result, the readiness evaluation serves as the foundation for the company’s transformation.

Building a Finance Organization

A key component of a successful IPO is finding the proper finance organization with the skills to provide high-quality financial reporting on time.

We advise a business to begin acting like a public company at least a year before submitting its registration statement, concentrating on cutting the monthly financial closing process to a manageable amount of time and preparing quarterly financial information with the level of accuracy and detail of a prospective public company.

Building a solid Financial Planning and Analysis division is also essential for providing the precise predictions required for IPO valuation exercises, tracking versus guidance, and forecasting profits with accuracy.

The initial few months of a firm’s existence as a public corporation are crucial. Failure to provide regulators with the necessary financial disclosures would diminish shareholder value and jeopardize confidence.

So, before stepping into the limelight, it’s critical to establish a solid financial organization with a repeatable procedure.

Sustainability

Building a sustainable process—such as corporate governance, audit committees, internal control, legal, and tax—is often given less attention by businesses.

However, once a company is listed, it must continue to meet ongoing compliance and regulatory needs. This requires carefully planned staging to guarantee that every component is prepared.

All in All

Ultimately, consistency is crucial to a successful IPO, as is having a well-prepared stock narrative that is simple to understand and has good economics and fundamentals.

Companies that want to go public in the future could start now to offer themselves the greatest chance of success. Pre-IPO Advisory services are important in performing a thorough IPO readiness assessment to ensure a company is ready to successfully go through IPO.

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What Are the US GAAP (Generally Accepted Accounting Principles) Standards?

Post author By admin
Post date July 1, 2022

What Are the US GAAP
(Generally Accepted Accounting Principles) Standards?

A set of regularly followed accounting rules and standards for financial reporting is known as generally accepted accounting principles (GAAP or US GAAP).

The requirements of GAAP, the standard set by the U.S. Securities and Exchange Commission (SEC), contain regulations relevant to each sector, as well as explanations of concepts and principles.

GAAP is designed to make sure that financial reporting is open and uniform across all organizations. Such rules and regulations also allow professional accounting firms in Malaysia to provide reliable accounting services by following global industry standards.

What is US GAAP

US GAAP, or Generally Accepted Accounting Principles (United States), is a comprehensive set of accounting standards, principles, and procedures issued by the Financial Accounting Standards Board (FASB). These guidelines govern how companies prepare and present their financial statements in the United States.

For companies with US operations or US investors, complying with US GAAP ensures transparency, consistency, and comparability of financial reports. It is especially relevant for Malaysian businesses involved in cross-border transactions or planning US market entry.

History of US GAAP

Companies would be free to publish financial information in whatever style best suited their requirements if there were no regulatory restrictions. Investors might be readily duped by the capacity to present a company’s financial situation favourably.

Businesses’ inaccurate and deceptive reporting tactics were largely to blame for the Great Depression of 1929, a financial disaster that resulted in years of suffering for millions of Americans. In response, the federal government and expert accounting organizations set out to develop guidelines for the moral and truthful reporting of financial data.

Who Manages GAAP?

Although the U.S. federal government mandates that public corporations follow GAAP, it has no input into the creation of these guidelines. Instead, it is left to independent boards to establish, update, and maintain accounting rules.

These boards get together to talk about prospective modifications and new standards when GAAP problems or queries come up. For instance, the board members gathered to discuss how corporations and governments should disclose the financial impacts of the COVID-19 pandemic.

The Financial Accounting Foundation is in charge of ensuring that the boards behave appropriately and carry out their duties.

US GAAP and Industry Standards

GAAP is a collection of rules. While its principles aim to increase the openness of financial statements, they do not ensure that a company’s financial statements are free from mistakes or omissions that are meant to deceive investors.

The SEC aims to switch from using GAAP to using International Financial Reporting Standards, according to its statement (IFRS).

However, the latter departs significantly from GAAP, and adoption or convergence has made poor progress. (View IFRS, International Financial Reporting Standards.)

Although the government does not control GAAP, both the government and industry have worked together to make it possible.

All firms are not required to utilize GAAP, but those publicly listed and subject to SEC regulation are required to do so for the purposes of financial reporting.

Companies with external investors are not required to adhere to this standard, but those that do are held to it by the SEC, which mandates annual external audits by independent accountants.

Despite the requirement, the SEC is not in charge of the GAAP standards. Instead, any modifications to the corporate level’s financial reporting requirements are actively influenced by the Financial Accounting Standards Board (FASB).

The FASB seeks advice from the FASB Advisory Council (FASAC) on any issues that could affect GAAP regulations.

Governmental organizations, on the other hand, are subject to a set of guidelines that vary somewhat from GAAP. These standards are overseen by the Government Accounting Standards Board (GASB).

The GAAP regulations in other nations are distinct from those in the U.S. These regulations are made by the FASB in each nation, such as the Canadian Institute of Chartered Accountants (CICA).

The Securities and Exchange Commission published a tentative “roadmap” in 2008 that may eventually result in the United States abandoning GAAP and adopting the London-based International Financial Reporting Standards instead (IFRS).

3 Components of US GAAP

Following are the three main parts of US GAAP:

Basic Accounting Principles

There are ten principles that separate the business dealings of an organization from the private dealings of its owners, standardize the monetary units used in reports, and expressly state the time periods covered by certain reports. The recognized best practices for cost, transparency, matching, revenue recognition, professional judgment, and conservatism are all taken into consideration.

FASB Rules and Standards

The FASB publishes the FASB Accounting Standards Codification, a collection of standards that are formally recognized and often updated. Standards based on prior APB-established best practices are included in the compendium. These organizations have their roots in historical financial reporting laws that the federal government put in place after the 1929 stock market disaster that started the Great Depression.

Industry Practices

Not all businesses adhere to the GAAP paradigm. Instead, specialized organizations adhere to industry-specific best practices that are meant to represent the subtleties and complexity of various business fields. The accounting and financial reporting practices employed by banks, for instance, vary from retail enterprises.

How US GAAP Differs from IFRS

While both US GAAP and IFRS (International Financial Reporting Standards) aim to improve the quality of financial reporting, they differ in structure, terminology, and application.

Key Differences	US GAAP	IFRS
Governing Body	FASB (US)	IASB (International)
Approach	Rules-based	Principles-based
Inventory Accounting	Allows LIFO	LIFO not permitted
Development Costs	Expensed	Often capitalized
Revaluation of Assets	Not allowed	Allowed under certain conditions

Why Malaysian Companies Should Understand US GAAP

Understanding and applying US GAAP standards is critical for Malaysian companies that:

Operate as subsidiaries of US-based companies.
Seek to attract US investors or partners.
Plan to list on US stock exchanges like NASDAQ or NYSE.
Engage in joint ventures with US firms.

Failure to comply with US GAAP could lead to inaccurate reporting, regulatory issues, or loss of investor confidence. Partnering with a US GAAP advisor helps Malaysian companies navigate the complexities of cross-border accounting.

Recent Updates in U.S. GAAP Standards

As financial reporting requirements evolve, it is essential for businesses to stay updated with the latest changes in U.S. Generally Accepted Accounting Principles (GAAP).

The Financial Accounting Standards Board (FASB) and regulatory bodies like the U.S. Securities and Exchange Commission (SEC) continuously refine these standards to improve transparency, comparability, and compliance. Below are some of the key updates that have been recently introduced.

1. Lease Accounting Updates – ASU 2023-01

One of the significant updates under GAAP is the issuance of Accounting Standards Update (ASU) 2023-01, which focuses on Leases (Topic 842) and applies specifically to common control arrangements.

Effective for fiscal years beginning after December 15, 2023, this update provides guidance for lease arrangements between entities under common control. The amendment allows private companies and nonprofit organizations to rely on the written terms and conditions of these agreements rather than conducting an extensive lease assessment.

Additionally, the update mandates that leasehold improvements tied to common control leases be amortized over their useful life rather than the lease term, ensuring better alignment with economic reality (Clark Nuber, 2023).

2. Stock Compensation Clarifications – ASU 2024-01

In 2024, FASB issued ASU 2024-01, which provides clearer guidance on Compensation – Stock Compensation (Topic 718). The update includes additional illustrative examples to help entities determine whether profits interest and similar awards should be accounted for under stock-based compensation rules. This refinement helps businesses avoid misclassifications and ensures that employee and executive compensation expenses are recorded accurately (Eide Bailly, 2024).

3. Increased Focus on Non-GAAP Measures and R&D Spending

The growing use of non-GAAP financial measures, such as Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), has led FASB to prioritize new standards for reporting such metrics.

Starting in 2025, FASB is expected to introduce additional guidelines to improve the transparency and comparability of non-GAAP financial metrics. Similarly, the board is considering updates related to the accounting treatment of research and development (R&D) expenditures, as companies across industries have been lobbying for more flexibility in capitalizing these costs (Wall Street Journal, 2025).

These changes aim to provide investors with more consistent and reliable financial data.

4. Strengthened Audit Quality Standards by the SEC

To enhance the integrity of financial reporting, the SEC approved new audit quality standards in September 2024. These standards, proposed by the Public Company Accounting Oversight Board (PCAOB), impose stricter requirements on accounting firms to identify, manage, and continuously monitor audit risks.

The new framework, effective from December 2025, increases the accountability of audit firm leadership and aims to reduce the risk of audit failures (Reuters, 2024). With stricter compliance measures in place, businesses will need to ensure robust internal controls and adherence to updated auditing procedures.

The Future of U.S. GAAP: What to Expect?

The changes outlined above reflect the evolving nature of financial reporting under U.S. GAAP. As businesses continue to navigate regulatory shifts, staying informed about these updates is critical for maintaining compliance and financial transparency.

With FASB and the SEC focusing on issues such as lease accounting, stock compensation, non-GAAP metrics, and audit quality, companies should proactively adjust their financial reporting processes to align with the latest standards.

For organizations operating across multiple jurisdictions, particularly those expanding into markets like Malaysia, understanding how these U.S. GAAP changes interact with local financial reporting standards such as IFRS (International Financial Reporting Standards) is also crucial. Businesses should work closely with their financial advisors and auditors to ensure seamless compliance with both domestic and international accounting requirements.

Conclusion

Overall, US GAAP plays an important role in setting global standards that different organizations, businesses, industries, and firms, including accounting firms in Malaysia, can follow to ensure they comply with global accounting and auditing standards.

The goal of GAAP is to ensure that all businesses’ financial reporting is transparent and consistent. By adhering to international industry standards, these rules and regulations also enable Malaysian professional accounting firms to offer trustworthy accounting services.

FAQs About US GAAP in Malaysia

Do Malaysian companies need to comply with US GAAP?

Only if they have operations in the US, are subsidiaries of US companies, or are seeking US investments or public listings.

Can a company report under both IFRS and US GAAP?

Yes. Many multinational companies prepare dual reports or reconcile between the two frameworks for compliance.

Is US GAAP mandatory in Malaysia?

No. Malaysia adopts IFRS. However, US GAAP is required if your business interacts with US stakeholders who demand compliance.

How long does it take to convert from IFRS to US GAAP?

The timeframe varies based on business complexity. Our team can assess and provide a detailed roadmap for conversion.

Why choose ShineWing TY Teoh for US GAAP services?

We combine global expertise with local insight, offering end-to-end US GAAP advisory tailored to Malaysian companies.

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Advantages of Outsourcing Accounting Services in Malaysia

Post author By admin
Post date June 24, 2022

Advantages of Outsourcing Accounting Services in Malaysia

The modern accounting services and payroll systems are much more complicated than they’ve ever been.

Although technology has made accounting more flexible, efficient, and accurate in the financial industry, not every kind of business can keep up with the expanding technology and accounting processes.

Companies that outsource their accounting services to a competent accounting firm in Malaysia are far more productive and efficient in such situations.

Outsourcing is a long-term contract where you hand over management of your company’s financial system, or sections of it, to an independent, external entity.

Outsourcing legal services, advertising, marketing, and printing services has been a critical part of many businesses for a long time now.

Since more and more businesses are becoming aware of the many advantages of outsourcing, the trend of outsourcing accounting services in Malaysia has been steadily expanding.

The following are some of the most significant advantages of working with an accounting firm in Malaysia.

1. Affordability

Implementing in-house payroll and accounting systems is difficult and costly since you must employ and educate skilled accountants to operate according to your company’s needs.

It is a highly costly procedure since you must consider the workers’ regular income, vacation and leave, insurance, and many other key aspects of a company model.

By outsourcing your accounting services in Malaysia, you may simply avoid these costs, as professional firms can easily handle accounting functions like a business valuation.

Many accounting firms in Malaysia provide affordable options that are both reasonable and flexible. You will most likely pay a charge for accounting services that will be far less than the cost of administering your own accounting system.

2. Save Time and Increase Productivity

Accounting firms in Malaysia have knowledgeable and qualified professionals that have years of expertise in delivering professional accounting services; therefore, outsourcing accounting services increases the efficiency and productivity of the process.

As a result, the whole project will be readily handled, and the records will be maintained current. This is critical since it cuts down on the time it takes to prepare financial reports and tax filings.

Furthermore, these organizations provide complete tax and financial auditing services that may help you improve your company’s performance.

Auditing and evaluating financial accounts ensures that the financial data provided to company owners and prospective investors is accurate, allowing them to get the most out of their investments.

3. Maximize Efficiency

Hiring a Malaysian accounting firm would assist your organization in optimizing its business and financial procedures. As a consequence, the accounting firm’s services will be able to meet the specific needs of your company.

Furthermore, the accounting company may advise you on how to improve your entire business’ financial structure and analyze your investments to optimize earnings.

Experts have complete knowledge of the legal rules and regulations, so they will ensure maximum compliance with the law. Hence, it will ensure that you do not face legal issues in terms of accounting procedures.

4. Competence and Reliability

A significant benefit of outsourcing accounting services in Malaysia is that you can fully rely on such competent and reliable services to handle the accounting procedures.

Accounting responsibilities would be handled well by the highly competent and experienced workforce.

You may enlist the help of an accounting firm in Malaysia if you need to submit tax returns or need a professional to perform business valuation in Malaysia.

5. Support for Small Businesses

Outsourcing accounting services is a good idea for all sorts and sizes of companies, particularly small ones. Small businesses often lack the financial means to engage full-time accountants and buy the equipment and computer systems required to keep accurate financial records.

Minimal businesses, on the other hand, may reap several advantages in return for a small charge by enlisting the help of a competent accounting company in Malaysia.

Accounting services from trained and skilled accountants, contemporary payroll systems, guidance on strengthening financial systems, and the use of new technology for the improvement of the firm are just a few of the advantages.

All in All

Outsourcing accounting services means professionals with years of training and expertise in applying best practices and accounting standards will work for your business.

They also have a working knowledge of new tools and technologies that may be leveraged to deliver the finest accounting services.

As a result, you can rely on these businesses to manage your financial problems with care and efficiency.

Once you’ve outsourced your accounting services in Malaysia, the accounting company will be responsible for maintaining the best accounting practices and services and using new technology tools to give the appropriate services that will greatly benefit your organization.

Therefore, outsourcing accounting services is a cost-effective, dependable, and efficient way to keep your accounting services up to date.

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What Should a Sustainability Report Include?

Post author By admin
Post date June 24, 2022

What Should a Sustainability Report Include?

Creating a credible sustainability report is critical for companies that want to be taken seriously in this age of environmental concerns and when consumers want to know the complete impact of a business on the economy, climate, and society in general.

Several current procedures and trends make preparing sustainability reports more efficient.

Generally, sustainability reporting includes creating a thorough report that provides complete details about an organization’s working procedures and its environmental, social, and economic performance.

If you choose to hire a professional accounting firm in Malaysia, you will not have to worry about gathering and compiling all such data yourself.

Following are some of the major things you should include in a sustainability report:

1. Definition of Sustainability

The exact definition of sustainability can vary greatly from company to company. You should meet with the individual or organization that has asked you to produce the sustainability report to ensure you are creating a relevant sustainability report.

The definition of sustainability can be confined to “green” attempts to make the company more environmentally friendly.

It might entail collaboration with a local charity. It might include initiatives to assist workers in gaining access to wellness, professional training, tuition reimbursement, and enhanced benefits.

Therefore, a specific definition of sustainability should be considered during sustainability reporting.

2. Introduction

The firm and its numerous processes related to the sustainability report must be effectively introduced in the report.

This introduction’s goal is to present your company to a wide range of readers, including potential consumers and new stakeholders.

In addition, the report should contain information about the market environment and the relevance of sustainability.

3. Sustainability Goals

Discussing the sustainability plan, in short, medium, and long periods is one of the most effective strategies to improve the effectiveness of your sustainability report.

Other objectives should also be identified, representing the broader corporate goals. The sustainability objectives of large corporations may also be discussed in terms of multiple divisions.

4. CEO Statement

It is important to include a statement by the organization’s CEO. Ideally, it should be accompanied by true personal commitment aimed at driving the company toward greater sustainability.

The statement should reflect the company’s sustainability goals and how it will achieve them. It should not be a lengthy statement. Try to make it short, crisp, and effective.

5. Sustainability Activities

Include a section on the company’s unique approaches, or initiatives, for addressing sustainability. For instance, the corporation may define sustainability as lowering its environmental effect.

Installing more energy-efficient lighting, launching a recycling program, compensating workers for using public transportation or carpooling, procuring materials and supplies from green suppliers, or lowering the size or energy cost of product packaging would be among its strategies.

6. Employee’s Role

Companies should explain their workers’ participation in sustainability initiatives and provide instances of how they are teaching them to be more environmentally conscious.

They may mention specific workers by name, especially if they have earned awards or other forms of special acknowledgement for their efforts.

If you are using professional accounting services in Malaysia, or an accounting firm in Malaysia is creating a reliable sustainability report for you, you can work closely with them to provide all the relevant details, so they can include them in the report.

7. Executive Summary

The overall language of a sustainability report should be simple and easy to understand for the majority of the investors and various other stakeholders.

Moreover, it must contain an executive summary that provides details about all the important topics covered and discussed through sustainability reporting.

8. Provide Recommendations

Finish the report with a summary of the project, data on whether the organization is on track to fulfill its stated objectives, and any suggestions for the future.

Include precise recommendations for each project facet, as well as any big-picture suggestions, such as adding or removing certain activities, extending the program, or boosting sections of the program.

An appendix that provides evidence of your information and any other additional thorough explanations should be included after this section.

Conclusion

The development of a competent team to handle different aspects and sections of the report is a key step in producing a solid sustainability report. Large-scale enterprises often have a lot of resources to devote to report writing and sustainability reporting.

A reliable option to efficiently complete the process of sustainability reporting is contacting a professional accounting firm in Malaysia, as they can help you in preparing a comprehensive and reliable sustainability report by using the best resources and practices involved in sustainability reporting.

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What is the Arm’s Length Principle in Transfer Pricing?

Post author By admin
Post date June 24, 2022

What is the Arm’s Length Principle in Transfer Pricing?

Malaysia is an attractive business destination to global corporations due to its stable tax framework, ease of doing business, and a large pool of multilingual talent. The country’s tax structure has been instrumental in luring enterprises from all over the globe.

Malaysia is home to a number of tax countries, resulting in both international and domestic transfer pricing regulations. The Malaysian Inland Revenue Board (IRB) has no specific priority areas regarding transferring pricing.

Instead, authorities normally concentrate on a specific sector for a certain length of time since it is easier to focus on firms with similar challenges.

Nonetheless, due to the expanding number of companies, particularly large-scale organizations, tax audit activity in Malaysia has increased dramatically. It is necessary to be acquainted with the procedure of producing transfer price paperwork to deal with transfer pricing in Malaysia.

The Arm’s Length Principle is the foundation of transfer pricing. This article discusses the role of Arm’s Length Principle in transfer pricing and how accounting firms in Malaysia use it in transfer pricing documentation.

Why is the Arm's Length Principle Necessary?

When your business is made up of many legal companies, those entities often exchange commodities, services, and intellectual property.

If this is the situation with your company, you must ensure that all transactions are conducted at a distance. This is necessary to ensure that your company is tax compliant.

In this case, the Arm’s Length Principle plays a critical role in deciding the transfer pricing principles.

Definition of Arm’s Length

In simple words, at arm’s length means that a transaction between associated entities represents the conditions and pay set compared to the transaction between unrelated entities.

All OECD member countries have agreed upon the Arm’s Length Principle and adopted it as a standard guideline for multinational enterprises to deal with tax-related rules and regulations.

The OECD defines the Arm’s Length principle as:

“This valuation principle is commonly applied to commercial and financial transactions between related companies. It says that transactions should be valued as if they had been carried out between unrelated parties, each acting in his own best interest.”

The Role of Arm’s Length Principle in Transfer Pricing

When one legal entity inside your firm transacts with another, you must establish a transfer price. This transfer fee should be competitive.

Its purpose is to guarantee that your firm reaps the benefits of intercompany interactions equally. But, in terms transfer pricing implies that when a firm buys products or services from a related corporate entity, the price it pays should be the same as if the two companies were unrelated.

In other words, merely because the parties are related legal entities, there should be no price adjustment or unique criteria for the transaction.

Importance of the Arm’s Length Principle

The arm’s length principle ensures that firms with several legal entities in various countries are tax compliant and do not benefit unjustly (inadvertently or maliciously) from transactions between their connected entities.

It gives businesses a straightforward rule for assessing fair, tax-compliant pricing and conditions for intercompany transactions, as well as giving tax authorities the tools they need to combat base erosion and profit shifting in multinational corporations (MNEs).

Calculating the transfer pricing and using the arm’s length principle can be challenging, so it is better to rely on professional accounting services in Malaysia to perform this important measure.

Calculating Arm’s Length Transfer Prices

There are a variety of transfer pricing strategies you may employ to estimate arm’s length transfer costs for your transactions.

Some of the most common methods include the comparable uncontrolled price (CUP), the resale price method, and the cost-plus method.

A company can choose and implement the best method by considering its own unique conditions and getting help from an accounting firm for transfer pricing in Malaysia.

As long as you have access to trustworthy comparable data, the CUP technique is regarded as the most straightforward way to apply the arm’s length principle.

It entails assessing the royalty rates established in similar licensing agreements between unrelated businesses and utilizing them as a starting point for calculating fair transfer prices for the intercompany transactions being studied.

If an organization wants to modernize or grow its private healthcare facility, it can apply for tax exemption. However, the healthcare facility must benefit at least 5% of the healthcare travelers from all patients. In this case, it can apply for an exemption of 100% of QCE for five years.

Final Thoughts

The bottom line is that understanding and calculating the arm’s length transfer pricing is important to create a thorough and reliable transfer pricing document.

It is critical for organizations, especially multinational companies, to deal with transfer pricing for taxation purposes and import-export laws.

Hiring professional accounting services in Malaysia to handle transfer pricing is one of the best and most efficient ways to complete this process.