Disciplinary proceedings were brought by the Public Company Accounting Oversight Board (PCAOB) in the United States against the Firm when the Firm did not comply with various PCAOB rules. The PCAOB found that in performing an audit, the Firm failed to obtain audit committee pre-approval for certain tax services provided to the issuer.
PCAOB issued an order in which the Firm agreed to:
a. A censure;
b. Pay a fine of US$30,000; and
c. Ensure compliance with PCAOB rules and standards for communications with audit committees and documentation for those communications.
The Firm failed to self-report the PCAOB’s Order to CPABC as the Code requires.
The Investigation Committee determined that the Firm contravened the following Rules of the CPABC Code of Professional Conduct:
102.3 - Matters to be reported to CPABC
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
206.1 - Compliance with professional standards
The Committee recommended that the Firm:
- accept a reprimand; and
- pay partial investigation expenses of $1,000.