• Register
Return to: Home > News > Regulation > PCAOB finds former PwC partner guilty of audit standards violation

PCAOB finds former PwC partner guilty of audit standards violation

The Public Company Accounting Oversight Board (PCAOB) has issued a disciplinary order against former PwC partner Randall Stone for violating PCAOB rules and standards.

The order bars Stone from associating with a registered public accounting firm for a minimum period of three years after which Stone can appeal to have the bar lifted. Stone will also have to pay a $50,000 fine.

The order concludes the PCAOB disciplinary proceeding started in December 2012 which looked into PwC's 2007 audit of medical device manufacturer ArthroCare Corporation .

Stone was the partner in charge of the audit and the PCAOB said in a statement: "The board found that Stone ignored or failed to properly evaluate numerous indicators that should have alerted him to the possibility that ArthroCare was improperly recognising revenue on its 2007 sales of medical devices to DiscoCare, Inc."

Stone failed to exercise due professional care and scepticism when, among other things, he agreed with the company's proposed accounting for the acquisition without adequately assessing whether such accounting treatment complied with generally accepted accounting principles, the PCAOB statement continued.


Related links:

PwC

PCAOB

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    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.