PCAOB Sanctions RT LLP for Violations of Rules and Standards Related to Quality Control, Documentation, and Form AP Requirements
PCAOB fines the firm $50,000 and revokes its PCAOB registration
The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Singapore-based RT LLP (“the firm”) for violations of various PCAOB rules and standards.
Specifically, the PCAOB found the following:
- RT LLP violated PCAOB quality control standards because, during the time it was conducting a 2017 issuer audit, the firm failed to have policies and procedures relating to performing audits under PCAOB standards or monitoring of its quality control system.
- RT LLP violated the PCAOB’s audit documentation standard because it failed to assemble for retention a complete and final set of audit documentation for the 2017 issuer audit.
- RT LLP violated PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants, because it failed to timely file required Form APs in connection with two audits involving that same issuer.
“No matter what their location or client base, PCAOB-registered firms must have a sound system of quality control to ensure high audit quality and to protect investors,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “In this case, not only did the firm’s quality control system fall short, its failures in documentation and reporting impeded the PCAOB’s ability to conduct a full review of its issuer audit work.”
Without admitting or denying the findings, the firm settled with the PCAOB and consented to a disciplinary order. The order censures RT LLP and revokes its registration, with the right to reapply for registration after two years. It also imposes a $50,000 civil money penalty on the firm. Before it can reapply for registration, RT LLP is required to undertake certain remedial measures to establish quality control policies and procedures to give the firm reasonable assurance that its PCAOB audits would be conducted in accordance with applicable professional rules and standards.
PCAOB enforcement staff members Melissa R. Handrigan, Robyn N. Baggetta, and Jud Palardy conducted the investigation. Kyra C. Armstrong and Raymond J. Hamm 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. Strengthening enforcement is one of the PCAOB’s most important strategic goals. In 2022, the PCAOB issued 42 public enforcement orders, double the number of orders in 2021, and imposed its highest-ever total annual penalties.
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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