backOn June 23, 2023, without admitting or denying the findings, Malaysia-based Total Asia Associates PLT (“TAA”) consented to a disciplinary order for violations of PCAOB rules and quality control standards in connection with TAA’s alleged failure to establish quality control policies and procedures to provide reasonable assurance that professional standards were met and that personnel participated in relevant training. Additionally, the PCAOB alleges that TAA failed to “improve its related quality control policies and procedures” when it was “aware of significant audit deficiencies in its engagement quality reviews.” The PCAOB noted TAA had failed to update its audit methodology since 2015. Specifically, TAA’s audit methodology did not cover critical audit matters (“CAMs”). Moreover, TAA had failed to ensure that its personnel received training related to EQRs and CAMs. The PCAOB alleges that TAA had identified deficiencies, both in terms of noncompliance with its own policies and procedures and PCAOB standards, related to its EQRs.
The settled order imposes an $80,000 civil money penalty, revokes TAA’s registration with the ability to reapply after two years, and requires TAA to undertake certain remedial measures to establish quality control policies and procedure.
The PCAOB press release is here and the PCAOB settled order is here.