PCAOB enforcement roundup: Grant Thornton fined in disclosure crackdown

Grant Thornton

The Public Company Accounting Oversight Board (PCAOB) announced several notable enforcement actions last week, including sanctions against six firms for allegedly violating agency reporting requirements.

Grant Thornton received the largest penalty of the bunch ($40,000) when the PCAOB announced its sweep Dec. 22. The firm, along with four others, was faulted for failing to meet Form 3 requirements regarding disclosure when the firm becomes aware it or its employees are a respondent in certain disciplinary proceedings and the conclusion of those proceedings.

Grant Thornton’s Brazilian subsidiary was among other firms penalized for disciplinary proceeding disclosure failures, receiving a $20,000 fine. Also disciplined were a KPMG unit in South Korea ($30,000 fine) and BDO unit in Brazil ($30,000). U.S.-based KCCW Accountancy Corp. ($20,000) rounded out the group.

The sixth firm fined in the sweep was MaloneBailey for “repeated failures since 2018” to timely disclose on Form 3 when former clients had not filed Forms 8-K with the Securities and Exchange Commission following the end of the firm’s relationship with those clients. MaloneBailey agreed to pay $25,000.

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