backOn March 29, 2023, the SEC instituted and settled administrative proceedings against Colorado-based Spicer Jeffries LLP and one of its partners in connection with the audits of the 2018 financial statements of two private funds maintained by an unnamed SEC-registered investment adviser. The settled order asserts that, although the auditors assessed valuation of investments as a significant fraud risk, they did not implement the planned audit approach to respond to the risk, failed to obtain sufficient appropriate audit evidence regarding the valuation of certain investments, and failed to document audit work in this area. Moreover, the order alleges that the partner failed to adequately supervise the audits and that the firm failed to adhere to its own quality control standards. The SEC censured the firm and barred its partner from appearing or practicing before it as an accountant, with the right to reapply subject to certain conditions, after one year. The firm agreed to undertake several remedial actions, including retaining an independent consultant to evaluate, report to the SEC on, and require changes to the firm’s quality control policies and procedures.
The order is attached.
