backOn July 18, 2023, the PCAOB issued a settled order sanctioning an engagement partner of the Texas accounting firm Turner, Stone & Company for improperly altering audit documentation in connection with the PCAOB’s inspection of the firm’s 2021 audit and review for a broker-dealer. The PCAOB alleged that the engagement partner, after learning that an inspection would occur, obtained a document from the audit client that the engagement team had not obtained during the audit, used that document to create a new workpaper, which he added to the audit file with back-dated sign-offs, and removed from the audit file a less detailed work paper related to the same issue that had been prepared during the audit. The PCAOB further alleged that when it raised the issue, the engagement partner falsely asserted that the engagement team had obtained the underlying documentation from the client during the audit and accidently omitted the work paper from the audit file.
The engagement partner admitted the PCAOB’s allegations. The PCAOB censured the partner, permanently barred him from associating with a PCAOB-registered firm, and imposed a civil monetary penalty of $50,000.
The matter is In re Edward Turner, CPA. A copy of the PCAOB order is attached.
