Courtesy of PCAOB
The Public Company Accounting Oversight Board sanctioned a former EY Peru audit partner for violating multiple rules and standards.
Daniel Carpio Diaz, a former audit partner in the Lima, Peru, office of Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad (EY Peru), was fined $50,000 for violations related to the full scope component audit of Gilat Networks Peru, a Latin American subsidiary of an Israel-based satellite-based broadband communications provider.
In the audit, for the year ended December 31, 2020, Carpio made violations in evaluating GNP's revenue recognition, failed to appropriately supervise the GNP engagement team and violated PCAOB audit documentation requirements.
As per the order, the PCAOB:
- Censures Carpio;
- Bars Carpio from working with a registered public accounting firm, with the right to petition the Board after three years;
- Imposes a $50,000 civil money penalty on Carpio; and,
- Requires Carpio to complete 40 hours of continuing professional education, in addition to any CPE related to any license he holds, before filing any petition for PCAOB consent to associated with an accounting firm.
