The Public Company Accounting Oversight Board announced settled disciplinary orders against four audit firms for not disclosing information about who was involved in specific audits.
The firms had failed to file Form AP, which reports who led each individual audit and whether any other firms were involved in the audit.
The board discovered the violations during a "sweep," in which it collects information about potential violations from a number of firms at the same time.
"Investors and the public rely on Form AP disclosures to understand exactly who has a hand in the audits of public companies. Timely disclosure is critical for transparency and accountability in our capital markets, and the PCAOB will be vigilant in enforcing disclosure rules," said the board's chair, Erica Williams, in a statement. Williams had announced in July that sweeps would be part of strengthening enforcement.
All four firms have since filed the forms, and — without admitting or denying the board's findings — have agreed to the following disciplinary actions:
Yarel + Partners — $35,000 civil money penalty and censure;Shanghai Perfect CPA Partnership — $20,000 civil money penalty and censure;James Pai CPA PLLC — $20,000 civil money penalty and censure; and,Liebman Goldberg & Hymowitz LLP — $20,000 civil money penalty and censure.
The firms also agreed to establish policies and procedures aimed at guaranteeing compliance with PCAOB reporting procedures going forward.
"Today's settlements underscore the importance of timely filing Form APs in order to provide investors with information they need to make informed decisions," said PCAOB acting director of enforcement and investigations Mark Adler, in a statement. "This requirement must be taken seriously by audit firms."
Separately, the board posted
