05/07/2024 | Press release | Distributed by Public on 05/07/2024 12:00
PCAOB bars engagement partners, imposes practice limitation on engagement quality review partner, and imposes $130,000 in total fines
The Public Company Accounting Oversight Board (PCAOB) today announced three settled disciplinary orders sanctioning two former Liggett & Webb, P.A. ("Liggett & Webb") partners, Jessica Etania, CPA and Arpita Joshi, CPA, and engagement quality reviewer Robert Garick, CPA (collectively, "Respondents"). The PCAOB found that the Respondents each violated PCAOB rules and standards while serving as either engagement partner or engagement quality reviewer on Liggett & Webb's audits of the 2019 and 2020 financial statements of Innovative Food Holdings, Inc. ("Innovative Food") or Liggett & Webb's audits of the 2019 and 2020 financial statements of Luvu Brands, Inc. ("Luvu").
"Obtaining sufficient audit evidence and exercising due professional care and professional skepticism are fundamental to auditing. The PCAOB will take action to ensure there are consequences for putting investors at risk," said PCAOB Chair Erica Y. Williams.
Among other violations, the PCAOB found the following:
"This case highlights our division's commitment to pursue cases that hold auditors accountable for failing to conduct compliant audits, particularly when the failures involve multiple audits," said Robert E. Rice, Director of the PCAOB's Division of Enforcement and Investigations.
Without admitting or denying the findings, the Respondents consented to the PCAOB's orders, which:
PCAOB enforcement staff members David Florenzo, Robyn Baggetta, Laura Voisin, and Thomas Barry conducted the investigation, supervised by Kyra Armstrong and John Abell.
The PCAOB oversees auditors' compliance with the Sarbanes-Oxley Act, provisions of the securities laws relating to auditing, professional standards, and PCAOB and SEC rules.
Further information about the PCAOB Division of Enforcement and Investigations is available on the PCAOB website. Firms or individuals wishing to report suspected misconduct by auditors, or to self-report possible misconduct, may visit the PCAOB Tips and Referrals page.
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The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.
PCAOB Office of Communications and Engagement
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