The Public Company Accounting Oversight Board (PCAOB) has settled disciplinary measures against Fruci & Associates II and its former audit partner Jennifer Ann Crofoot, following inquiries into audits performed for four Nevada-based companies.
These PCAOB sanctions for audit violations follow findings that both the firm and Crofoot breached auditing regulations and standards.
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Fruci & Associates II, based in Spokane, Washington, together with certified public accountant Jennifer Ann Crofoot, were involved in audits of Clean Vision Corp, Hammer Fiber Optics Holdings Corp, LeeWay Services, and Zeuus.
During the period examined by the PCAOB, Crofoot was the designated audit partner at Fruci & Associates II and served as engagement partner on these audits.
The PCAOB stated that Jennifer Ann Crofoot authorised audit reports giving unqualified opinions even though necessary audit procedures for material accounts were either insufficient or, in certain cases, not conducted at all.
Additionally, these audit reports were issued without receiving the required concurring approval from an engagement quality reviewer, as outlined in PCAOB standards.
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By GlobalDataRegarding Fruci & Associates II, the PCAOB found that the firm failed to uphold proper quality control during these four audits.
Issues included weaknesses in maintaining audit documentation and in carrying out engagement performance requirements.
Such deficiencies meant the firm could not effectively prevent or identify the conduct committed by Crofoot.
As a result of these findings, Jennifer Ann Crofoot received a formal censure and has been barred from working with any registered public accounting firm.
She may apply to re-enter the profession after three years from the order’s date but must first complete 40 hours of continuing professional education on PCAOB auditing standards before submitting any petition for reinstatement.
The order directed at Fruci & Associates II also includes a censure as well as a $50,000 civil penalty.
The firm will need to carry out remedial measures to address the lapses identified by the Board and improve compliance going forward.
Earlier this month, the PCAOB fined Florida-based public accounting firm Beckles & Co for repeated delays in filing Form APs in accordance with regulatory requirements.
