backOn June 18, 2024, the PCAOB announced two settled disciplinary orders sanctioning two audit firms, KKM CPA Associates PLLC (“KKM”) and BDO Chartered Accountants & Advisors (“BDO UAE”).
The PCAOB found that KKM, a U.S.-based registered firm, failed to list an engagement on its 2022 Form 2 in violation of PCAOB Rule 2200. Despite the PCAOB Division of Registration and Inspections’ multiple attempts to resolve the issue, KKM failed to file an amended Form 2. KKM’s reporting failure was identified as part of a routine PCAOB Form 2 sweep.
KKM consented to a disciplinary order (1) censuring it; (2) imposing a $25,000 civil money penalty; and (3) requiring the establishment of policies and procedures designed to ensure future compliance with PCAOB reporting requirements. KKM did not admit or deny the Board’s findings.
The PCAOB also found that BDO UAE, a United Arab Emirates based registered firm, failed to file a Form 3 to report a disciplinary proceeding until nine months after the proceeding concluded, in violation of PCAOB Rule 2203. Specifically, the PCAOB found that BDO UAE and one of its former partners failed to timely report that they were respondents in a disciplinary proceeding brought by the Auditors Disciplinary Board of the United Arab Emirates Ministry of Economy. BDO UAE’s violation was identified through the PCAOB’s regular monitoring of Form 3 compliance.
BDO UAE consented to a disciplinary order (1) censuring it; (2) imposing a $20,000 civil money penalty; and (3) requiring remedial measures, including the establishment of policies and procedures designed to ensure compliance with PCAOB reporting requirements. BDO UAE did not admit or deny the Board’s findings.
The PCAOB press release for both settlements is available here, and the KKM settled order is available here and the BDO UAE order is available here.