backOn February 11, 2025, the PCAOB announced a settled Order sanctioning Heber Maughan, a partner at MaughanSullivan LLC, for improperly altering workpapers provided to the PCAOB. The Board alleged that Maughan modified workpapers for five issuer audits during PCAOB inspections of his firm. When the PCAOB subsequently opened an investigation arising from those inspections, Maughan again provided improperly altered audit work papers. The Board found that Maughan violated PCAOB Rules 4006 and 5110 and AS 1215 because he changed and backdated workpapers after the audit completion dates, provided them to the PCAOB, and failed to disclose the modifications. The Board also found that Maughan violated “integrity and objectivity” obligations under ET § 102 due to his repeated misconduct and intentional misrepresentations.
Without admitting or denying the findings, Maughan consented to the PCAOB’s order, which (1) censured him, (2) barred him from associating with a PCAOB-registered firm, and (3) imposed a $10,000 civil money penalty. The penalty would have been $75,000, but was reduced to $10,000 due to Maughan’s lack of financial resources. The PCAOB approved the firm’s application to withdraw from registration on October 21, 2024.
The settled order is available here.