Action against Respondents, two audit partners employed by an independent audit firm, for allegedly deviating from PCAOB standards and ignoring red flags indicating that the financial statements and public filings of a company under audit contained material misstatements.  According to the SEC, Respondents also caused the audit firm to issue audit reports in which it misrepresented that it had conducted the audits in accordance with PCAOB standards, and that, based on its opinion, the company’s financial statements were GAAP-compliant and fairly presented the company’s financial condition.  Respondents have agreed to pay civil penalties of $20,000 and $10,000, respectively.

SEC Order