PCAOB Sanctions Former BF Borgers Audit Director for Violating PCAOB Rules and Standards in Four Audits of Three Public Companies

The Public Company Accounting Oversight Board (PCAOB) today announced that it has sanctioned Bo-Shiang ("Eric") Lien, a former audit director and non-equity partner at BF Borgers CPA PC, for violations of PCAOB rules and standards in connection with the audits by BF Borgers of the financial statements of three public companies between 2017 and 2019.

The PCAOB found that Lien violated PCAOB rules and standards while serving as the engagement partner on BF Borgers' audits of the 2019 financial statements of Chineseinvestors.com, Inc., the 2018 financial statements of United Cannabis Corporation, and the 2015 and 2016 financial statements of China Pharma Holdings, Inc.

The PCAOB found that Lien failed to comply with PCAOB rules and standards in multiple instances, and those failures occurred in significant risk or high-risk areas, including revenue and the valuation of intangible assets. The PCAOB determined that Lien violated PCAOB rules and standards requiring auditors, among other things, to exercise due professional care and professional skepticism, to design and implement audit procedures that address the assessed risks of material misstatement, and to obtain sufficient appropriate audit evidence supporting the audit opinion.

"The investing public relies on PCAOB-registered firms and their personnel to perform their audit responsibilities in accordance with PCAOB regulations and to protect the integrity of the capital markets," said PCAOB Chair Erica Y. Williams. "By repeatedly failing to comply with fundamental PCAOB auditing standards, Lien posed a risk to investors, who need high-quality financial statements to inform their decision-making."

The Board barred Lien from being associated with a registered public accounting firm, with the right to file a petition for Board consent to associate with a registered firm after two years. The Board also imposed a $25,000 civil money penalty on Lien and required that Lien complete an additional 50 hours of continuing professional education in subjects that are directly related to the audits of financial statements under PCAOB standards.

"While he served as an engagement partner on public company audits, Lien committed multiple, serious violations of PCAOB auditing standards," said Patrick Bryan, Director of the PCAOB's Division of Enforcement and Investigations. "Additionally, this case demonstrates that the Board will not hesitate to impose significant sanctions, including industry bars, on non-equity partners who violate PCAOB standards."

PCAOB enforcement staff members Rebecca J. Mealey, Melissa R. Handrigan, Zachary J. Springfield, Kevin Matta, and Dave Eccard 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. 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, including compliance reports filed pursuant to federal securities laws.

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