Following Sweep, PCAOB Sanctions Three Audit Firms for Failing to Disclose Who Worked on Audits

The Public Company Accounting Oversight Board (PCAOB) today announced settled disciplinary orders sanctioning three audit firms for failing to file required Form APs, which disclose who led specific audits for the firm and whether any other firms were involved in those audits. The violations were found during a sweep, which enables the PCAOB to collect information on 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 PCAOB Chair Erica Y. Williams.

Failure to file Form APs on time is a violation of PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants. All three firms have now filed the Form APs in question.

The following firms, without admitting or denying the findings, consented to the PCAOB’s orders and the disciplinary actions:

• Olayinka Oyebola & Co (Chartered Accountants) – $90,000 civil money penalty and censure
• Victor Mokuolu, CPA PLLC – $30,000 civil money penalty and censure
• MAH & Associates, LLP – $25,000 civil money penalty and censure

In addition, each firm consented to undertake remedial measures to establish policies and procedures directed toward ensuring future compliance with PCAOB reporting requirements.

“These enforcement actions make clear the importance of timely filing Form APs in order to provide investors with information they need to make informed decisions,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations.

PCAOB enforcement staff members Sina Mansouri, Kristina Shin, and Dave Eccard conducted the investigations, supervised by Kyra C. Armstrong. The PCAOB oversees auditors’ compliance with the Sarbanes-Oxley Act, provisions of the securities laws relating to auditing, professional standards, and PCAOB and SEC rules. Further information about the PCAOB Division of Enforcement and Investigations is available on the PCAOB website.

Firms or individuals wishing to report suspected misconduct by auditors, or to self-report possible misconduct, may visit the PCAOB Tips and Referrals page.