September 16, 2019

PCAOB enforcement

Marcum’s Microcap Conference Seemed Like a Great Event for Auditor Independence Violations

In the storied history of auditor independence violations by PCAOB-registered accounting firms, Marcum broke the rules in a rather unique and spectacular way: it publicly advocated its audit clients as investment opportunities. The PCAOB was probably giddy writing and sending out this press release on Sept. 10: The Public Company Accounting Oversight Board today announced […]

Ex-EY Audit Partner’s Lousy Audit Judgment Landed Him a $25,000 Fine From the PCAOB

Earlier today, we talked about audit quality or the lack thereof in Australia, the U.S., and, for that matter, all over the world. Well, this latest enforcement order from the PCAOB doesn’t help make a case that audit quality at the biggest accounting firms in the U.S. is getting any better. Compliance Week reported: The […]

PCAOB Doesn’t Take Kindly to Auditors Who Alter Audit Documentation Prior to an Inspection

For years, the PCAOB has pleaded with auditors to quit altering audit workpapers after being notified of an inspection, and some auditors continue to thumb their noses at the PCAOB. Like Humayoun Khan, a former PwC auditor, who was accused of improperly altering a previously archived workpaper in anticipation of a PCAOB inspection. A PCAOB […]

It Seems the PCAOB and SEC Are Giving Accountants the Benefit of the Doubt More These Days

Maybe it’s because the PCAOB had a new chairman and a whole new board at the beginning of last year. Or maybe it’s because the audit regulator’s longtime enforcement chief bolted last May and the position still hasn’t been permanently filled. Whatever the reason, the PCAOB settled only 13 enforcement actions against accountants in 2018, […]

The PCAOB Is Sick and Tired of Not Being Told About Firms’ Past Disciplinary Hearings

RSM US isn’t the only firm that has been lazy about disclosing to the PCAOB that they’ve been involved in a non-PCAOB disciplinary proceeding. In fact, RSM’s affiliate in Hong Kong and Deloitte’s affiliate in Colombia are also guilty of taking too damn long to send the PCAOB the proper paperwork. And now both firms […]

kpmg china medical

KPMG Bermuda’s Head of Ethics Fined By the PCAOB For Being Unethical

Here’s a fun story of what not to do if you’re an ethics director at a Big 4 firm. Damion Henderson, a managing director at KPMG Bermuda, was fined $10,000 by the PCAOB on April 9 for signing off on documents that had been re-created and backdated in advance of a PCAOB inspection and not […]

PCAOB Fined RSM US $15,000 for Taking Its Sweet-Ass Time to File a Form 3

Say a PCAOB-registered accounting firm is a defendant or respondent in an administrative or disciplinary proceeding that was initiated by another regulator. That firm has to let the PCAOB know about this by filing Form 3, Special Report, within 30 days after the event. The firm also has to let the PCAOB know that it […]

Grant Thornton Current and Former Partners Will Have a Seat In the PCAOB’s Penalty Box

The Public Company Accounting Oversight Board doled out suspensions to a current partner and a former partner at Grant Thornton on Feb. 26 for their roles in screwing up the 2013 audit of a real estate investment trust. Richard Huff Jr., CPA, was censured and given a one-year ban by the PCAOB. Huff was the […]

The Person At the PCAOB Who Auditors Feared the Most Is Now Their Friend

In an interesting turn of events, Claudius Modesti, who was the head enforcer at the Public Company Accounting Oversight Board for 14 years before leaving last May, will now be defending audit firms that run afoul of the PCAOB and the Securities and Exchange Commission in his new role with law firm Akin Gump Strauss […]

PCAOB Told SEC ‘Hold My Drink,’ Went All Enforcement-Crazy on Accountants in 2017

2017 was a banner year for the Public Company Accounting Oversight Board when it came to enforcement actions against accountants. For the Securities and Exchange Commission, not so much. The PCAOB finalized 35 enforcement actions involving “accountants”—otherwise known as CPAs employed by SEC registrants, auditors, and audit firms—last year, up from 28 in 2016, according […]