A number of audit firms and auditors disciplined by the PCAOB
The Public Company Accounting Oversight Board has settled disciplinary orders involving three audit firms and 3 people within these firms. The PCAOB is charging them with violating the federal securities laws and not keeping to the PCAOB auditing standards and rules in the audits of 10 public companies.
Some of the charges include fraud, non-cooperation and lack of independence, as well as failures under Section 10A of the Securities Exchange Act of 1934 relating to procedures for detection of illegal acts. The three firms involved and the three auditors all offered to settle the charges with the imposition of certain sanctions. Neither of the three audit firms or auditors have admitted nor denied the findings of the board.
The three audit firms and auditors involves are
Harris F. Rattray, CPA, PL
Harris F. Rattray, CPA, PL, and its owner. Rattray and his audit firm violated the Exchange Act and PCAOB rules and auditing standards, he also falsely stated in three audits that they were conducted in accordance with PCAOB standards.
The PCAOB permanently revoked the firm’s registration, and the board also permanently barred Rattray from associating with a registered firm.
Hood & Associates CPAs, P.C.
Hood & Associates CPAs, P.C., and its sole audit partner, Rick C. Freeman, CPA. The audit firm issued audit opinions for three issuers that falsely stated that they had performed the audits in accordance with PCAOB standards.
The PCAOB revoked the firm’s registration with a right to reapply after three years, and imposed a $10,000 civil monetary penalty. The board also permanently barred Freeman from associating with a registered firm.
Acquavella, Chiarelli, Shuster, Berkower
Acquavella, Chiarelli, Shuster, Berkower and former non-equity partner, David T. Svoboda, CPA. The audit firm violated PCAOB auditing standards in connection with the audits of the financial statements of two issuers.
The PCAOB revoked the firm’s registration with a right to reapply after two years, and imposed a $10,000 civil monetary penalty. The board also barred Svoboda from associating with a registered firm, with a right to petition the PCAOB to terminate the bar after three years.
In addition, all of the firms and individuals were censured.
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