On September 25, 2023, without admitting or denying the findings, Michael D. Messina, CPA., a former engagement quality review partner at Marcum LLP, settled with the SEC for alleged violations of PCAOB standards in connection with the 2017-2020 audits of a Delaware corporation.

 

According to the SEC, Messina served as the engagement quality reviewer for all four audits and failed to perform an adequate engagement quality review in compliance with regulatory standards. Specifically, the SEC alleges that Messina failed to properly evaluate the significant judgments made by the engagement team and the sufficiency of the audit evidence, failed to exercise due professional care, and failed to appropriately document his review in audit work papers. According to the settled order, these failings led to substantive audit issues going unaddressed and inadequate documentation for all four audits.

 

The SEC’s order alleges that Messina engaged in improper professional conduct under Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e) of the SEC's Rules of Practice, and that he willfully aided and abetted and caused Marcum to violate Rule 2-02(b)(1) of Regulation S-X. The SEC’s order imposed a civil penalty of $30,000 and suspended him from appearing and practicing before the SEC as an accountant (with the right to apply for reinstatement after two years).

 

The SEC press release is available here, and the settled order is available here.