PCAOB Sanctions Five Audit Firms for Violations Related to Audit Committee Communications or Reporting Requirements

Four Orders Related to Audit Committee Communications 

Four sanctioned firms failed to make certain required communications with audit committees, as required by AS 1301, Communications with Audit Committees, and/or Rule 3524, Audit Committee Pre-approval of Certain Tax Services. The firms are the following:  

• Accell Audit & Compliance, P.A. – $40,000 civil money penalty and censure 

• Crowe MacKay LLP (Canada) – $30,000 civil money penalty and censure 

• Ernst & Young AG (Switzerland) – $45,000 civil money penalty and censure 

• Grant Thornton LLP (Canada) – $30,000 civil money penalty and censure 

Two of these firms, Crowe MacKay LLP and Grant Thornton LLP, also failed to document audit committee pre-approval of certain services, in violation of AS 1215, Audit Documentation. In addition, Accell Audit & Compliance, P.A. failed to communicate in writing all material weaknesses to an issuer’s audit committee, in violation of AS 1305, Communications About Control Deficiencies in an Audit of Financial Statements. 

The four orders related to audit committee communications announced today result from a continuing PCAOB sweep that led to previous sanctions on four firms in February 2024, three firms in November 2023, and five firms in July 2023.  

One Order Related to Required Reporting 

The fifth sanctioned firm, Halpern & Associates, LLC, failed for more than two years to report to the Board on Form 3 the initiation of a disciplinary proceeding brought by the U.S. Securities and Exchange Commission against the firm and its namesake partner, violating PCAOB Rule 2203, Special Reports. The Board imposed on that firm a $20,000 civil money penalty and censure. 

Halpern & Associates, LLC’s violation was identified through regular monitoring that the PCAOB conducts of registered firms’ compliance with the requirement to timely report the events listed in Form 3. PCAOB Rule 2203, Special Reports, requires registered firms to file a Form 3 disclosing certain reportable events listed in that form within 30 days of the occurrence of those events. Timely special reporting on Form 3 provides information that is important to investors and to the Board’s oversight of registered firms.  

Sanctions Include Remedial Measures 

Without admitting or denying the findings, each firm consented to its respective PCAOB order and civil money penalty. Each firm also consented to undertake remedial measures to establish, revise, supplement, or comply with policies and procedures concerning compliance with PCAOB rules and standards related to these violations.  

“This latest round of orders shows that firms cannot neglect their responsibilities to keep audit committees informed and report required information to the PCAOB,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “The PCAOB will bring disciplinary actions to reinforce the importance of these obligations, as set forth in our rules and standards.” 

PCAOB enforcement staff members Elliott C. Mogul, Travis Miscia, Sina Mansouri, Jarai Ings, Pooja Patel, and Natalia Garcia Baerga conducted the investigations into Crowe MacKay LLP, Ernst & Young AG, and Grant Thornton LLP. Jennifer Byrne and Laura Voisin conducted the investigation into Accell Audit & Compliance, P.A. Brett Collings conducted the investigation into Halpern & Associates, LLC. John Abell, C. Ian Anderson, Kyra C. Armstrong, and William F. Ryan supervised these matters.  

The PCAOB oversees auditors’ compliance with the Sarbanes-Oxley Act, provisions of the securities laws relating to auditing and professional standards, and PCAOB and SEC rules. Strengthening enforcement is one of the PCAOB’s strategic goals. 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.