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SEC disciplines Crowe, two partners over audit failures

Tammy Whitehouse | December 26, 2018

The Securities and Exchange Commission has settled charges against Crowe, two of its partners, and two additional partners at a now-defunct audit firm for “significant audit failures” connected to a payroll services firm that went bankrupt.

According to the SEC, Crowe’s audit team identified “pervasive fraud risks” in its 2013 audit of Corporate Resource Services but failed to respond appropriately. The company declared bankruptcy in 2015 after the discovery of roughly $100 million in unpaid federal payroll tax liabilities.

In a statement, Crowe says the enforcement action related to work the company performed on a single audit in 2014. “Crowe is committed to maintaining the highest standards of audit quality and regulatory compliance, and we cooperated fully with the...

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