backOn April 9, 2024, Pan-China Singapore PAC (“the Firm”) settled with the PCAOB for violating PCAOB quality control standards during 2019 and 2020. Specifically, the order states that the Firm’s system of quality control failed to provide reasonable assurance that it: (1) used an audit methodology designed to comply with PCAOB auditing standards, (2) ensured staff participated in relevant training, (3) met audit documentation requirements, and (4) made required audit committee communications. According to the PCAOB, the Firm failed to timely archive workpapers and had a 60-day archive policy, which was inconsistent with AS 1215, Audit Documentation, which requires archiving within 45 days. Additionally, in one instance, the Firm lost a copy of a USB drive containing the archived workpapers. As such, the order finds the Firm failed to have policies and procedures related to audit documentation sufficient to provide it with reasonable assurance that it would comply with the requirements of AS 1215, Audit Documentation, in violation of the quality control standards. The order also notes that the Firm failed to timely file Form APs for seven audit reports. The PCAOB censured Pan-China Singapore PAC, imposed a civil money penalty of $75,000, and required the Firm to establish or augment policies and procedures to obtain reasonable assurance of compliance with applicable PCAOB rules and standards. The order was entered on a neither admit nor deny basis.
The order is available