National Audit Firm Admits Wrongdoing by Ignoring Red Flags and Fraud Risk

A national audit firm and two of its partners agreed to settle SEC charges that they ignored red flags and fraud risks while conducting deficient audits of two publicly traded companies. The public companies were later subject to SEC enforcement actions for improper accounting and other violations.

The firm admitted wrongdoing and agreed to forfeit approximately $1.5 million in audit fees and interest plus pay a $3 million penalty.