Blog | Auditor Liability Bulletin
PCAOB Issues Initial Decision Barring Auditor from Association with a Registered Firm and Revoking the Firm’s Registration
June 16, 2023
| On June 13, 2023, the PCAOB issued Notice of Finality of Initial Decision in In the Matter of Monroe J. Chalmers CPA, P.C. and Monroe J. Chalmers, CPA. The decision was entered upon default, after the respondents failed to answer the order instituting the proceedings and became final when the respondents did not petition the Board for review. The Chief Hearing Officer’s findings in the initial decision include the following: the respondents failed to cooperate with an inspection by the PCAOB’s Division of Registration and Inspections; the respondents failed to cooperate with the PCAOB’s Division of Enforcement and Investigations; the respondents failed to obtain required engagement quality reviews in connection with two firm audits of broker-dealers for fiscal year 2019; and the respondent firm failed to pay the mandatory 2021 firm annual fee to the PCAOB. As a result of the findings of noncooperation, the Chief Hearing Officer censured the respondents and ordered them to pay a civil penalty of $75,000, permanently barred the respondent auditor from being an associated person of a registered public accounting firm and revoked the respondent firm’s PCAOB registration. The sanctions will become effective if the SEC does not order review of the initial decision upon an application by the respondent or on its own motion. The case is In the Matter of Monroe J. Chalmers CPA, P.C. and Monroe J. Chalmers, CPA. A copy of the order is attached. |
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