PCAOB sanctions U.S. firm for failure to supervise unregistered Chinese firm

Courtesy of PCAOB

The Public Company Accounting Oversight Board sanctioned U.S.-based TPS Thayer for failure to reasonably supervise an unregistered accounting firm in China. 

The Board found violations related to five audits of two public companies with their principal place of business in China. According to the order posted Thursday, TPS Thayer failed to appropriately plan the  audits and failed to reasonably supervise the Chinese-based firm that played a substantial role in those audits.

TPS Thayer also failed to properly disclose the unregistered firm's participation on the PCAOB's Form AP and in communications to the audit committees of the public companies.

The PCAOB censured the firm, imposed a $100,000 civil money penalty on  the firm and required the firm to undertake certain contingent remedial actions.