Enforcement Actions Against CPAs by the PCAOB

Enforcement Actions against CPAs by the PCAOB
Author’s Name
Institutional Affiliation
Course Code and Name
Professor’s Name
Date
Enforcement Actions against CPAs by the PCAOB
The Public Company Accounting Oversight Board (PCAOB) plays a significant role in enforcing the professional standards, rules, and laws that govern the auditing of public companies. In addition, enforcement actions are taken against Certified Public Accountants (CPAs) to ensure that there are no violations of the established regulations in accounting. The paper focuses on three enforcement actions against CPAs by the PCAOB and reflects on them.
The first enforcement action was given to RT LLP, which was effective on 11th April 2023. RT LLP is a registered public accounting company, whose registration was revoked by the PCAOB. In addition, the PCAOB imposed a penalty of $50,000 on the firm (RT LLP, 2023). RT LLP was given conditions and requirements to meet before making an application again in the future, particularly by ensuring that it establishes quality control procedures and policies. The sanctions on RT LLP were given since the company violated PCAOB rules AS 1215, 3211, and failed to implement proper quality control procedures that complied with PCAOB standards (RT LLP, 2023). I felt bad for RT LLP for its registration being revoked. However, I liked PCAOB for ensuring that all firms adhere to professional accounting standards. As a CPA, I would ensure that RT LLP complies with the accounting standards. For sure, I am well-prepared to ensure that my firm would follow PCAOB rules. I did not sympathize with the CPA, since RT LLP had failed to comply with PCAOB regulations, which the company might have been aware that they existed.
Friedman LLP was sanctioned for failing to comply with the Sarbanes-Oxley Act (2002), Section 105(c)(6) (Friedman LLP, 2023). The firm did not supervise two accounting companies that were unregistered by the PCAOB. In addition, Friedman LLP violated the PCAOB quality and auditing control standards. After reading the case, I felt bad for the CPA. The PCAOB did a great job of sanctioning Friedman LLP since it failed to adhere to specific accounting standards. As a CPA, I would ensure that t...