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Years after blown audit, PCAOB finally gets charges aired

Tammy Whitehouse | October 27, 2016

It took exactly seven years to make the charges stick, but a former EY partner accused of shoddy work has finally been named and held accountable for making light of revenue recognition anomalies that led to restatement.

The Public Company Accounting Oversight Board initiated action against Mark Laccetti in 2009 alleging audit violations in 2004. The board held hearings in 2010, issued a decision in 2011, then waited five more years for the appeals process to play out before the board’s prescribed disciplinary action would take effect. Now Laccetti is subject to a two-year bar from being associated with a PCAOB-registered firm and a civil penalty of $85,000.

The case stems from the audit of Taro Pharmaceuticals U.S.A., a subsidiary of Taro Pharmaceuticals Industries Ltd. based in Israel. Laccetti, then with Ernst & Young, was the engagement partner for the U.S. subsidiary’s audit for the year ending Dec. 31, 2004. He had been promoted to partner in July 2004....

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