A former partner of PwC Brazil has been fined $10,000 and barred for two years from associating with a registered public accounting firm.
Wander Rodrigues Teles, the former lead partner for PwC Brazil's 2010 and 2011 audits of the Brazilian subsidiaries of Sara Lee, including Sara Lee Cafés do Brasil Ltd., was sanctioned for failing to adequately respond to signs that Sara Lee Cafés overstated its accounts receivable. In 2012, Sara Lee restated its 2010 and 2011 financial results, citing accounting irregularities in its Brazil operations, including inflated accounts receivable.
"Faced with indications of possible material misstatements, the lead partner did not exercise appropriate professional skepticism," Claudius B. Modesti, director of PCAOB enforcement and investigations said. "He repeatedly ignored information suggesting that the company's financial information was materially misstated."