PCAOB fines firm $50,000, revokes registration

The Public Company Accounting Oversight Board has fined Singapore-based RT LLP $50,000 and revoked its registration over a number of issues.

According to the settled disciplinary order, the firm violated the PCAOB's quality control and documentation standards in a 2017 audit by not having quality control standards policies and procedures in place, and failing to assemble for a retention a final set of audit documents.

The firm also failed to timely file Form AP, "Auditor Reporting of Certain Audit Participants," for two audits involving the same client.

The board has significantly ramped up its enforcement over the past year or so, including issuing its biggest-ever fine on an individual auditor. Its chair, Erica Williams, has regularly promised a tougher stance on auditors since taking charge in January 2022, after the Securities and Exchange Commission fired the board's previous chair.

"No matter what their location or client base, PCAOB-registered firms must have a sound system of quality control to ensure high audit quality and to protect investors," said Robert Rice, director of the PCAOB's Division of Enforcement and Investigations, in a statement. "In this case, not only did the firm's quality control system fall short, its failures in documentation and reporting impeded the PCAOB's ability to conduct a full review of its issuer audit work."

RT LLP consented to the disciplinary order without admitting or denying the findings. It will be eligible to re-apply for registration after two years, provided it undertakes remedial measures to establish appropriate quality control policies.