backOn September 23, 2025, the PCAOB announced a settled disciplinary order sanctioning Marcum Asia CPAs, LLP, a New York-headquartered firm formerly known as Marcum Bernstein & Pinchuk LLP (“MarcumBP” or the “Firm”), for violating PCAOB rules and auditing standards. Without admitting or denying the Board’s findings, MarcumBP consented to the Order which (1) censured the Firm; (2) imposed a civil money penalty of $100,000; and (3) required the Firm to conduct training relating to communications between predecessor and successor auditors.
The Board imposed sanctions based on its findings that the Firm violated PCAOB rules and PCAOB auditing standards related to the improper transfer and use of draft audit work papers during the audit transition of China-headquartered company Gridsum Holding Inc. from MarcumBP to Shandong Haoxin Certified Public Accountants Co., Ltd. (“Haoxin”). The PCAOB found that MarcumBP failed to reach a proper understanding with Haoxin regarding the use of its draft work papers, as required by PCAOB standards. Instead, communications occurred through a third-party intermediary, and Haoxin relied on MarcumBP’s draft work papers to issue an audit report with minimal additional procedures.
The settled order is available here.