PCAOB sanctions five firms

The Public Company Accounting Oversight Board today announced it settled sanctions against four audit firms for failing to make required communications with audit committees, and one firm for violating reporting requirements. The board imposed censures, $165,000 in fines and remedial measures. 

Accell Audit & Compliance, Crowe MacKay, EY Switzerland and Grant Thornton Canada were each charged for civil money penalties and censures for failing to meet the requirements under AS 1301, "Communications with Audit Committees," and/or Rule 3524, "Audit Committee Pre-approval of Certain Tax Services." 

Crowe MacKay and Grant Thornton also violated AS 1215, "Audit Documentation," by failing to document audit committee pre-approval of certain services. In addition, Accell violated AS 1305, "Communications About Control Deficiencies in an Audit of Financial Statements," by failing to communicate in writing all material weaknesses to an issuer's audit committee. 

The PCAOB also sanctioned Halpern & Associates for failing for more than two years to report to the board on Form 3, which requires firms to disclose certain events within 30 days of their occurrence.

Courtesy of PCAOB

The orders come following an ongoing PCAOB enforcement sweep that led to previous sanctions on Baker Tilly, Grant Thornton Bharat, Mazars and SW Audit in February 2024, as well as three firms in November 2023 and five firms in July 2023.

"The PCAOB will continue to hold firms accountable for providing audit committees, the PCAOB, and the public with important information to help keep investors protected," board chair Erica Williams said in a statement. 

Each firm consented to its respective PCAOB order and civil money penalty without admitting or denying the findings. The firms also agreed to undertake remedial measures to establish, revise, supplement or comply with related PCAOB policies and procedures concerning compliance.

"This latest round of orders shows that firms cannot neglect their responsibilities to keep audit committees informed and report required information to the PCAOB," Robert Rice, director of the board's Division of Enforcement and Investigations, said in a statement. "The PCAOB will bring disciplinary actions to reinforce the importance of these obligations, as set forth in our rules and standards." 

Firms or individuals wishing to report, or self-report, suspected misconduct by auditors may visit the PCAOB Tips and Referrals page.