Three former auditors of a US financial services firm have settled with the Securities and Exchange Commission, after the regulator charged them with 'improper professional conduct'.
The charge – of former PwC auditor Press Southworth and former Deloitte auditors, Robert Harbrecht and Brian Spires – related to their audit work of receivables securitisation.
The three were cited by the SEC for violating generally accepted auditing standards (GAAS) and GAAP during their time as auditors for National Century Financial Enterprises.
The violations also relate to fraud which the auditors failed to detect until 2002, when the company filed for bankruptcy, the Columbus Dispatch reported.
The SEC also alleged that several inaccuracies in the financial reports and securities disclosure should have led the auditors to question the actions of the company's managers. Instead the auditors placed an 'undue reliance on management representation', the SEC said.
Without admitting or denying the charges, the three have agreed to being barred from practice and holding CEO or CFO positions at public companies.
Further reading:
Comments