PCAOB Sanctions CohnReznick LLP for Failing to Make Required Disclosures on a Timely Basis
PCAOB censures the firm, imposes a $20,000 fine, and requires the firm to comply with enhanced processes for PCAOB reporting
The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning CohnReznick LLP (“the firm”) for failing to report key information on the PCAOB’s Form 3 within the required timeframe. Specifically, the firm violated PCAOB Rule 2203, Special Reports, because it did not make required disclosures about SEC disciplinary proceedings involving the firm and its personnel until roughly five months after the deadline for doing so.
As part of the Board’s efforts to strengthen enforcement, it has increased its vigilance concerning firms’ failures to disclose required events on Form 3, or to do so by the applicable deadline.
“Registered firms must report qualifying events on Form 3 on a timely basis so that such information is available to investors and can be used as part of the Board’s oversight of those firms,” said Robert E. Rice, PCAOB Director of Enforcement and Investigations.
CohnReznick, without admitting or denying the findings, settled with the PCAOB and consented to a disciplinary order that censures the firm and imposes a $20,000 civil money penalty. The order also requires the firm to comply with its PCAOB reporting policies and procedures, including those pertaining to providing reasonable assurance that reportable events are reported on the applicable PCAOB form in a timely and complete manner.
PCAOB enforcement staff member Brett Collings conducted the investigation, supervised by C. Ian Anderson.
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.
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, including compliance reports filed pursuant to federal securities laws.
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