The Public Company Accounting Oversight Board (PCAOB) sanctioned a Chinese today public accounting firm for repeated violations of PCAOB rules and for failing to cooperate with an investigation.
Specifically, PCAOB settled a disciplinary order sanctioning JTC Fair Song CPA Firm, located in Shenzhen, the People’s Republic of China.
Over a multiyear period, the PCAOB found that the firm repeatedly failed to make required filings in accordance with PCAOB rules. First, on multiple occasions, the firm failed to timely report the participants in its issuer audits on PCAOB Form AP in violation of PCAOB Rule 3211. Second, the firm failed to timely file its annual reports on PCAOB Form 2 for 2021, 2022, and 2023, in violation of PCAOB Rule 2201.
Them when the PCAOB’s Division of Enforcement and Investigations attempted to investigate the violations, the firm failed to cooperate, refusing to produce documents and information in response to formal demands.
“All registered firms must comply with PCAOB reporting requirements, which are designed to provide the PCAOB, investors, and other stakeholders with important information,” PCAOB Chair Erica Williams said. “When firms don’t comply, the PCAOB will use the tools at our disposal to hold them accountable to fulfill our investor-protector mission.”
Without admitting or denying the findings, the firm settled with the PCAOB and consented to a disciplinary order censuring the firm and revoking the firm’s registration.
The board accepted the firm’s offer of settlement, which does not require it to pay a civil money penalty.
“Today’s order should serve as a stark reminder that firms must cooperate with the Board’s investigatory process,” Robert Rice, director of the PCAOB’s Division of Enforcement and Investigations, said. “Cooperation with the Board’s processes is a bedrock principle under our rules and standards and is not optional.”
PCAOB enforcement staff members Stefan Hagerup and Tiffany Johnson conducted the investigation. Kyra Armstrong and John Abell supervised this matter.