Attachment

Press Release: PCAOB Sanctions Five Firms and Seven Individuals for Audit Failures, Violations of Engagement Quality Review Rules, or Noncooperation with an Investigation

June 15, 2016

The audit firms and individuals named in the orders released June 15, 2016, are listed below. All parties were censured, and all made admissions to some or all of the facts, findings, and violations unless otherwise noted.

  • Michael F. Albanese, CPA (New Jersey) – Revoked the firm’s PCAOB registration with a right to reapply after two years, and a $10,000 civil money penalty for failure to obtain sufficient appropriate audit evidence and exercise due professional care and skepticism in connection with two audits and failure to obtain an engagement quality review for these audits.
  • Michael F. Albanese, CPA, of Michael F. Albanese, CPA (New Jersey) – Barred him from being an associated person with a right to request terminating the bar after two years.
  • Jerry L Stanford, CPA (Florida) – Revoked the firm’s PCAOB registration with a right to reapply after two years for failure to obtain sufficient appropriate audit evidence and exercise due professional care and skepticism in connection with an audit and failure to obtain an engagement quality review for this audit.
  • Jerry L. Stanford, CPA, of Jerry L Stanford, CPA (Florida) – Barred him from being an associated person with a right to request terminating the bar after two years.
  • Donahue Associates LLC (New Jersey) – Revoked the firm’s PCAOB registration with a right to reapply after one year, and a $5,000 civil money penalty for failure to obtain an engagement quality review for three audits, and failure to comply with the Securities Exchange Act of 1934 by knowingly failing to resign or to report that its client had filed incorrect financial statements.
  • Brian D. Donahue, CPA, of Donahue Associates LLC (New Jersey) – Barred him from being an associated person with a right to request terminating the bar after one year.
  • Maillie LLP (Pennsylvania) – Did not admit nor deny any wrongdoing. The firm agreed to undertake significant remedial measures designed to prevent future violations of EQR standard, and a $2,500 civil money penalty for failure to comply with the provision of the EQR standard that requires an engagement quality reviewer from the same firm to be a partner or in an equivalent position.
  • Laurie Harvey, CPA, of Maillie LLP (Pennsylvania) – Did not admit nor deny any wrongdoing.
  • Li and Company, P.C. (New Jersey) – Permanently revoked the firm’s PCAOB registration for failure to cooperate with a Board investigation by refusing to provide documents and, in the case of the individuals listed below, by refusing to provide documents and sworn testimony.
  • Tony Zhicong Li, CPA, of Li and Company, P.C. (New Jersey) – Barred him from being an associated person.
  •  Gary L. Singer, CPA, of Li and Company, P.C. (New Jersey) – Barred him from being an associated person.
  •  Chunmin Liu, CPA, of Li and Company, P.C. (Utah) – Barred her from being an associated person with a right to request terminating the bar after five years.