PCAOB Sanctions Four Audit Firms for Communication Violations

In a recent move, the PCAOB has penalized four audit firms for breaches related to communication standards with audit committees. This enforcement action, part of a broader initiative, highlights the PCAOB’s commitment to upholding regulatory integrity, the agency announced.

The penalties, totaling $240,000, were imposed on Baker Tilly US; Grant Thornton Bharat (India); Mazars USA; and SW Audit (Australia). These firms failed to comply with communication requirements outlined in AS 1301, Communications with Audit Committees.

Three of the firms also violated additional PCAOB rules:

  • Baker Tilly US neglected pre-approval documentation for statutory audit services.
  • Grant Thornton Bharat failed to ensure the audit committee received management’s representation letter.
  • SW Audit breached independence requirements and failed to obtain audit committee pre-approval for certain services.

Each firm, while not admitting guilt, consented to the PCAOB’s findings and agreed to revised policies to align with regulatory standards.

The PCAOB’s enforcement efforts underscore its commitment to accountability and transparency within the auditing profession. Reporting mechanisms are available for individuals to disclose potential misconduct, fostering a culture of compliance and integrity.


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