Crowe Horwath’s Hong Kong firm has been sanctioned and its registration revoked by the Public Company Accounting Oversight Board (PCAOB) for refusing to cooperate with the US regulator’s investigation of the firm's audits of a China-based issuer
Crowe Horwath (HK) CPA Ltd consented to the sanctions and admitted to the facts, findings, and violations in the settled disciplinary order. The firm’s registration was revoked with a right to reapply after three years, and it was also censured.
James Doty, PCAOB chairman, said: ‘The Sarbanes-Oxley Act authorizes the board to impose significant sanctions on any registered firm that refuses to produce requested information in board investigations.
‘This is an important tool in our work to protect investors, and we will not hesitate to use it when a firm refuses to provide our enforcement staff with work papers and related information necessary to ensure compliance with PCAOB rules and U.S. law.’
Crowe Horwath HK failed to cooperate with a Board investigation by refusing to produce documents in response to a formal demand for documents, including audit work papers, as part of a board investigation.
Claudius Modesti, director of PCAOB enforcement and investigations, said: ‘Regardless of their location, the PCAOB is prepared to bring disciplinary proceedings against registered audit firms that fail to comply with their obligations under US law to provide information requested by the PCAOB.
‘These firms are gatekeepers to protect investors in US capital markets.’
The PCAOB settled disciplinary action for Crowe Horwath (HK) CPA Ltd is here.
