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SubscribePCAOB Sanctions Singapore Firm for Quality Control Violations
The PCAOB requires the firm to pay a $75,000 civil money penalty and to conduct training for all audit staff
The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Singapore-based audit firm Pan-China Singapore PAC (“the firm”) for violations of PCAOB rules and quality control standards.
Pan-China Singapore PAC is headquartered in Singapore and subject to Singapore’s laws. The PCAOB has access to inspect and investigate registered firms in Singapore in accordance with a joint cooperative arrangement in place since 2008.
The PCAOB found that the system of quality control at the firm failed to provide reasonable assurance that it:
Used an audit methodology, guidance materials, and practice aids designed to comply with PCAOB auditing standards and other regulatory requirements;
Ensured that staff participated in relevant training;
Met requirements with respect to audit documentation;
Made all required communications to issuer audit committees; and
Timely and accurately filed Form APs.
“When ineffective quality control systems put investors at risk, the PCAOB will hold firms accountable,” said PCAOB Chair Erica Y. Williams.
Without admitting or denying the findings, the firm settled with the PCAOB and consented to a disciplinary order imposing a $75,000 civil money penalty on the firm and requiring the firm to conduct certain training for all audit staff.
“Today’s order demonstrates again the Board’s global reach over international firms,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “Consistent with the Board’s statutory mandate, we will hold firms responsible for violations of PCAOB rules and quality control standards regardless of where they are located.”
PCAOB enforcement staff members Stefan Hagerup and Jerry Folk conducted the investigation. Kyra C. 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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