• Register
Return to: Home > News > Advisory > PCAOB ends 2018 with remedial action against Crowe firm

PCAOB ends 2018 with remedial action against Crowe firm

The US Public Company Accounting Oversight Board (PCAOB) has censored and fined Crowe Mackay after it found the firm violated PCAOB standards and rules in 2014 and 2015.

Specifically, it has fined the Canadian firm $25,000 for its 2014 and 2015 audits of Hunt Mining Corp. (HMC), as well as violations of PCAOB quality control standards in the areas of client acceptance and continuance and engagement performance.

PCAOB standards require firms perform certain activities at the beginning of an audit, including procedures around the continuance of a client relationship and the specific audit engagement. Firms also need to evaluate where certain matters are important to the company’s financial statements and internal control over financial reporting.

According the PCAOB, when Crowe Mackay was first engaged as HMC’s auditor, it failed to exercise due care and professional scepticism, and failed to plan audit procedures to obtain sufficient appropriate audit evidence to provide a reasonable basis for the Firm’s audit report.

The Board added: “In particular, the Firm failed to evaluate relevant public information about matters important to the company's financial statements and internal control over financial reporting, namely HMC's most recent annual filings with the Canadian Securities Administrators, which stated that HMC was a registered "foreign private issuer for the purposes of United States federal securities laws."

As well as the fine, the PCAOB has also told the firm it need to improve its control policies and procedures, and establish a policy ensuring training around the identification of audit clients subject to PCAOB audit standards.

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.