A Canadian cannabis company settled SEC charges for filing financial statements with the SEC containing material accounting errors, and failing to maintain adequate internal accounting controls.
SEC Acting Chief Accountant Paul Munter reminded independent auditors of their obligation to detect and prevent fraud in financial reporting.
SEC Acting Chief Accountant Paul Munter reminded newly engaged lead audit firms located outside of China and Hong Kong of their obligations when auditing foreign issuers located in the People's Republic of China or in Hong Kong.
SEC Acting Chief Accountant Paul Munter highlighted audit firms' responsibilities as independent gatekeepers and the need to be vigilant in protecting investors. He warned that failure to comply with independence obligations may subject firms to SEC or PCAOB enforcement actions.
The Public Company Accounting Oversight Board finalized a Statement of Protocol with the China Securities Regulatory Commission and the China Ministry of Finance. The protocol allows for the inspection of public accounting firms and their audits in mainland China.