PCAOB Sanctions Three Firms for Failing to Make Required Disclosures

Following sweep, PCAOB imposes censures, $85,000 in total fines, and remedial undertakings on three firms that violated PCAOB reporting requirements

Washington, DC, Aug. 11, 2023

The Public Company Accounting Oversight Board (PCAOB) today announced settled disciplinary orders sanctioning three audit firms for failing to report required information to the PCAOB. Specifically, two of the sanctioned firms failed to timely disclose their role in an audit of an issuer or broker-dealer on the PCAOB’s Form 2, Annual Report, and the third firm failed to timely report a legal name change on Form 3, Special Report.

Board staff identified the violations as a result of a sweep designed to uncover potential failures to comply with PCAOB reporting requirements. As was the case with its recent Form 3 sweep, the Board continues to strengthen enforcement through the use of sweeps against firms where there may be a violation of PCAOB standards or rules.

“Firms must not take these obligations lightly. Failures to make required disclosures undercut the PCAOB’s ability to protect investors, said PCAOB Chair Erica Y. Williams. 

“Complete and accurate reporting on required annual reports, and timely reporting of firm legal name changes enable investors to rely on information provided by firms and ensures the Board’s ability to oversee registered firms,” said Robert E. Rice, PCAOB Director of Enforcement and Investigations. “Sweeps enable us to pursue these types of potential violations and will continue to be an important tool in our enforcement arsenal.” 

The firms, without admitting or denying the findings, consented to the PCAOB’s orders and the disciplinary actions. The firms are the following: 

The Board also required each of the sanctioned firms to improve, or to comply with already-revised, policies and procedures concerning PCAOB reporting requirements.

PCAOB enforcement staff members Melissa R. Handrigan and Robyn N. Baggetta conducted the investigation, supervised by Kyra C. Armstrong.

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.


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. 


PCAOB Office of Communications and Engagement 
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