Disciplinary proceedings were brought by the Public Company Accounting Oversight Board
(PCAOB) in the United States against the Firm in instances when the Firm failed to obtain the proper approval of the audit committees of two clients regarding:
- certain services provided to the clients by the Firm; and
- how such services may affect the independence of the Firm.
The PCAOB issued an order censuring the Firm, imposing a US$30,000 penalty and requiring policy and procedure updates by the Firm.
The Investigation Committee determined that the Firm contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
501 - Policies and procedures for compliance with professional standards
502 - Policies and procedures for the conduct of a practice
The Investigation Committee recommended that the Firm:
- accept a reprimand; and
- pay investigation expenses of $1,304.