PCAOB Sanctions Edward Turner, CPA, for Noncooperation With a Board Inspection and Improper Alteration of Audit Documentation

The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Edward Turner, CPA (“Turner”), a founding partner of Turner, Stone & Company, L.L.P. (the “Firm”), for failing to cooperate with the PCAOB’s 2022 inspection of the Firm’s audit and review of a broker-dealer by providing improperly altered audit documentation and other misleading information to PCAOB inspectors. 

Specifically, after Turner learned the PCAOB would inspect the audit and review, he improperly prepared and added a new work paper to the audit documentation, backdated his sign-off and the engagement quality reviewer’s sign-off on the new work paper, and deleted a work paper from the audit documentation. Turner then provided the audit file to PCAOB inspectors without disclosing that it had been altered. When PCAOB inspectors asked about the new work paper, Turner acknowledged his conduct only in part and provided additional misleading information. 

“Improper altering of audit documentation in connection with a PCAOB inspection undermines the integrity of the Board’s inspection processes,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “This order demonstrates that providing improperly altered or backdated audit documentation or other misleading information to PCAOB inspectors will result in severe consequences.” 

Turner admitted to the facts, findings, and violations set forth in the PCAOB’s order and consented to the order and the disciplinary action. In addition to censuring Turner and imposing a $50,000 civil money penalty on him, the order permanently bars Turner from being associated with a registered public accounting firm.

PCAOB enforcement staff members Lindsay K. Kelemen and Tima C. Hawes conducted the investigation, supervised by Kyra C. Armstrong and Raymond J. Hamm.

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. Strengthening enforcement is one of the PCAOB’s strategic goals. 

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, including compliance reports filed pursuant to federal securities laws.

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