backOn January 15, 2025, the PCAOB announced a settled Order sanctioning SS Accounting and Auditing Inc. (“the Firm”) and its sole owner, Saima Sayani, for multiple violations of PCAOB rules and standards in connection with audits of China Green Agriculture, Inc., for the fiscal years ending on June 30, 2021, and June 30, 2022.
The PCAOB found that, in performing substantive testing of revenue on the China Green audits, the Firm and Sayani improperly limited the population from which it selected sales transactions. According to the Board, more than 80% of one of China Green’s larger business segment’s revenue for 2021 and 2022—constituting 23% and 27% of China Green’s total consolidated sales for those years, respectively—was not subject to testing as a result of the improper limitations. The Board further found that the Firm (1) failed to obtain sufficient audit evidence and to perform sufficient audit procedures for multiple significant accounts; (2) failed to perform sufficient audit procedures to test journal entries in response to fraud risks; and (3) failed to make required audit committee communications, among other deficiencies. The PCAOB also found that Sayani directly and substantially contributed to the Firm’s violations of quality control standards.
Without admitting or denying the findings, the Firm and Sayani consented to an Order that (1) censured the Firm and Sayani; (2) revoked the Firm’s registration with a right to reapply after two years; (3) barred Sayani from association with a registered public accounting firm with a right to reapply after two years; and (4) imposed a $65,000 civil money penalty on the Firm and Sayani, jointly and severally.
The PCAOB press release is available here. The settled order can be found here.