RSM to pay $3.75M to settle improper conduct charges

Audit firm RSM and three of its senior-level employees were charged with improper professional conduct by the Securities and Exchange Commission (SEC) for signing off on inflated revenues logged by a public company over four fiscal years of audits.

RSM failed to properly audit the financial statements of Connecticut-based Revolution Lighting Technology when the latter was violating generally accepted accounting principles (GAAP) from 2015-18 by improperly inflating its revenue with bill and hold sales, according to the SEC.

Without admitting or denying the agency’s findings, RSM will pay a fine of $3.75 million and hire an independent consultant to review its audit, review, and quality control policies and procedures.