backOn July 28, 2023, following a sweep, the PCAOB announced settled disciplinary orders sanctioning five audit firms for violating PCAOB rules and standards concerning audit committee communications. The PCAOB found that three of the firms—BPM LLP, Plante & Moran, PLLC, and S.R. Snodgrass, PC—did not obtain audit committee pre-approval in providing services to issuer clients, in violation of PCAOB Rule 3520, Auditor Independence, and (for BPM and Plante & Moran) PCAOB Rule 3524, Audit Committee Pre-Approval of Certain Tax Services. The PCAOB also determined that two additional firms (Mancera, SC and MSPC) failed to make and/or document communications with audit committees regarding the planned participation of other firms and auditors in the audit, in violation of AS 1301, Communications with Audit Committees.
The PCAOB censured all five firms and imposed civil monetary penalties as follows: a $50,000 penalty to BPM, a $40,000 penalty to each of Plante & Moran and Mancera, and a $30,000 penalty to each of S.R. Snodgrass and SMPC. Each firm also agreed to undertake measures to establish, improve, or comply with revised policies and procedures regarding compliance with PCAOB rules and standards concerning these violations.
The settled orders are available here: BPM, Plante & Moran, S.R. Snodgrass, Mancera, and MSPC.