The cannabis public company market is growing fast into a valuable, widespread industry. Audits of these cannabis companies are unique, requiring an understanding of the market and diverse operations. Cannabis-adjacent businesses face distinct risks because a portion of their revenue is derived from a highly volatile industry. Changes or fluctuations in regulations, laws and even societal attitudes can dramatically and suddenly impact the value of cannabis companies. That volatility then extends to those providing goods and services to the industry.
Here, Audit Analytics looks at accounting and auditing scenarios of public companies operating in the emerging cannabis industry.