PCAOB sanctions Canadian agency over noncooperation with inspections

The Public Firm Accounting Oversight Board posted a settled disciplinary order Tuesday sanctioning Hay & Watson, a agency in Vancouver, Canada, and its proprietor and managing companion, Essop Mia, for violating PCAOB guidelines and requirements throughout a 2019 audit after which failing to cooperate with a PCAOB inspection. 

The PCAOB discovered that Mia, who was listed as engagement companion, didn’t assemble a remaining set of documentation for the audit, after which he and colleagues on the agency improperly altered, added to and backdated work papers months after the deadline for assembling a whole and remaining set of audit documentation and shortly earlier than a PCAOB inspection. Mia and the agency violated PCAOB guidelines, in line with the PCAOB, by offering the altered work papers to PCAOB inspectors with out disclosing they’d been altered. 

Mia declined to remark when contacted by Accounting At this time, however mentioned a settlement was in course of.

“Inspections serve an vital position in defending buyers and bettering the standard of audit providers,” mentioned PCAOB Chair Erica Y. Williams in a press release. “Backdating signoffs and modifying paperwork prematurely of an inspection undermines the PCAOB’s capacity to examine registered corporations and warrants vital board sanctions.” 

The transfer comes because the PCAOB has introduced stricter enforcement and inspections for corporations beneath Williams’ management, together with with corporations overseas. The PCAOB not too long ago signed a preliminary settlement to examine corporations in China after years of effort (see story).

The PCAOB censured Hay & Watson in addition to Mia, and completely barred him from associating with a PCAOB-registered accounting agency. The board additionally completely revoked the agency’s registration, and imposed a $50,000 civil cash penalty on each the agency and Mia.