PCAOB and SEC Enforcement Activity Involving Auditors

In this podcast episode, Alison Forman, Principal and Certified Public Accountant from The Brattle Group, and Adam Karageorge, Brattle Associate, delve into recent SEC and PCAOB enforcement actions against auditors. Adam and Alison bring their extensive experience in handling matters involving auditor liability to provide a nuanced analysis of the evolving enforcement landscape.

The episode covers the significant uptick in PCAOB enforcement actions, especially against non-U.S. auditing firms, the impact of recent leadership changes at the SEC and PCAOB, and the implications of high-profile legal decisions for future regulatory actions.  The discussion provides listeners with a comprehensive look at the strategies employed by the regulators, exploring first of its kind enforcement, the shift towards more rigorous penalties, and an increased focus on accounting firms’ “tone at the top.”

Drawing from their recent research, Alison and Adam also compare enforcement activity in the first four months of 2024 to five predictions outlined in their report, 2023 Enforcement Activity Involving Auditors.

The link to the report referenced in this episode can be found here.

Note: This podcast reflects enforcement activity through April 30, 2024.  Keep an eye out for The Brattle Group’s upcoming mid-year update report which will discuss the SEC’s May 3, 2024 settlement with BF Borgers and its owner Benjamin F. Borger.  Sanctions included permanent suspensions and combined penalties of $14 million for “deliberate and systemic failures” to comply with PCAOB standards in audits and reviews included in more than 1,500 SEC filings.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.