PCAOB Sanctions Adeptus Partners LLC and Partner for Violations Related to Supervision, Review, and Quality Control

In settlement with PCAOB, the Firm and partner commit to $125,000 in fines, suspension of partner for deficient work related to audits, and engaging an independent consultant to improve audit quality

Washington, DC, Apr. 22, 2025

The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Adeptus Partners LLC (the “Firm”) and Howard S. Krant, CPA (“Krant”), a partner of the Firm, for violations of various PCAOB rules and standards – including inadequate supervision of engagement teams and review of their work – in connection with the audits of two issuers, Blockchain of Things, Inc. and Applied UV, Inc. The Firm was also sanctioned for violations of PCAOB quality control standards.  

“Substandard audit work and inadequate quality control put investors at risk,” said PCAOB Chair Erica Y. Williams. “When violations like these occur, the PCAOB will take enforcement actions to hold auditors and firms accountable.” 

The violations committed by Krant include: 

  • Failing to adequately supervise the engagement teams on the 2020 Blockchain of Things. Inc. and Applied UV, Inc. Audits, including a failure to review the workpapers for these audits or even obtain computer access to review the workpapers for the audits. 

  • Failing to properly review the engagement team’s work on deferred revenue for the Blockchain of Things, Inc. 2021 audit to ensure sufficient appropriate audit evidence was obtained.  

Additionally, the PCAOB found that the Firm’s system of quality control failed to provide the Firm with reasonable assurance that engagement teams performed issuer audits in accordance with applicable professional standards and regulatory requirements. 

“The Firm and one of its partners violated PCAOB standards in the conduct of the audits and failed to implement quality control policies and procedures to safeguard against these violations. The sanctions imposed by the Board hold the respondents accountable for those failures,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations.  

Without admitting or denying the findings, Krant and the Firm consented to the PCAOB’s order. The order: 

  • Censures both respondents; 

  • Imposes a $75,000 civil money penalty on the Firm, and a $50,000 civil money penalty on Krant; 

  • Suspends Krant from associating with a registered public accounting firm for a period of one year; and 

  • Requires the Firm to engage an independent consultant to review and make recommendations concerning the Firm’s system of quality control. 

PCAOB enforcement staff members Stefan Hagerup, Christina Carroll, and Nick Gradone conducted the investigation, with assistance from K Lynn Dunston, and were supervised by Kyra Armstrong, William Ryan, and John Abell. 

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. 

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About the PCAOB 

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws. 

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