PCAOB Sanctions De Visser Gray LLP for Violations of Rules and Standards Related to Quality Control

The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Canada-based De Visser Gray LLP (“De Visser Gray”) for violations of PCAOB rules and quality control standards.

Specifically, the PCAOB found that De Visser Gray violated PCAOB rules and quality control standards because the firm’s system of quality control failed to provide reasonable assurance that the firm and its personnel would:

• Comply with applicable PCAOB professional standards and regulatory requirements;
• Perform sufficient procedures to determine whether certain matters were critical audit matters (CAMs);
• Comply with independence-related pre-approval requirements before providing tax services to an audit client;
• Make all required audit committee communications; and
• Timely file Form APs.

“No matter where they are located, PCAOB-registered firms must follow PCAOB rules and standards,” said PCAOB Chair Erica Y. Williams. “Failing to do so puts the investing public at risk and will not be tolerated.”

Without admitting or denying the Board’s findings, the firm settled with the PCAOB and consented to a disciplinary order that:

• Imposes a $60,000 civil money penalty;
• Requires the firm to establish and/or revise its quality control policies and procedures to provide reasonable assurance that the work performed by engagement personnel meets all applicable audit requirements; and
• Requires the firm to train its personnel on certain PCAOB rules and standards.

“Firms must have quality control systems in place to ensure compliance with our standards,” said Robert E. Rice, PCAOB Director of Enforcement and Investigations. “If they do not, we will hold them accountable for those failures.”

PCAOB enforcement staff members Khristoph Becker and Ramón L. Torres conducted the investigation. Kyra Armstrong and John Abell supervised this matter.

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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