ARTICLE
16 October 2024

PCAOB Sanctions Four Audit Firms For Violations Related To Required Audit Committee Communications

On September 24, 2024, the PCAOB issued settled orders sanctioning four audit firms. As part of an ongoing enforcement sweep, the PCAOB found that Accell Audit & Compliance P.A. ("Accell")...
United States Accounting and Audit

On September 24, 2024, the PCAOB issued settled orders sanctioning four audit firms. As part of an ongoing enforcement sweep, the PCAOB found that Accell Audit & Compliance P.A. ("Accell"), Crowe MacKay LLP (Canada) ("Crowe McKay"), Ernst & Young AG (Switzerland), and Grant Thornton LLP (Canada) ("Grant Thornton") violated AS 1301 by failing to make certain required communications to the audit committees of its issuer clients. The PCAOB also found that Crowe MacKay and Grant Thornton failed to document audit committee pre-approval of certain services, in violation of AS 1215. Finally, with respect to Accell, the PCAOB also found that the audit firm failed to communicate in writing all material weaknesses to an issuer's audit committee in violation of AS 1305.

Each audit firm consented to a disciplinary order with the PCAOB that (1) censured the audit firm; (2) imposed a civil money penalty ranging from $30,000 to $45,000; and (3) required the audit firms to undertake certain remedial measures and/or to comply with its policies and procedures designed to ensure compliance with PCAOB rules and standards for communications with audit committees and the documentation of those communications.

The PCAOB press release is available here. The settled order for Accell is available here. The settled order for Crowe Mackay is available here. The settled order for Ernst & Young AG is available here. The settled order for Grant Thornton is available here.

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