[MeghanCPA]

I am confused of which standard setting board can impose civil sanctions/ civil penalties to individuals and firms?

PCAOB or SEC?

Page A1-69 Becker says that if a form is found to have violated the provisions of the SOX act, PCAOB impose the following sanctions “Civil monetary penalties of no more thank 750K individual and 15M for registered firms for intentionally or knowing conduct”

Page A1-87 Becker says that Civil Penalties -SEC may impose fines of not more than 100K (500K for a firm)

[kb24]

The first page is referring to the penalties in SOX which would apply to the auditors and to the audit firm and for infractions related to audits. The second page applies to any accountant registered to practice before the SEC. He/she isn't necessarily an auditor and the infractions aren't audit related.

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[MeghanCPA]

Thank you kb24

So, if the infraction is audit related, PCAOB will impose civil sanctions to auditors/firms (max 750K individual and 15M for firms)

If the infraction is not audit related and applies to any accountant registered to practice before the SEC, SEC will impose civil sanctions of 100K individual (500K for a firm)

[kb24]

That's my understanding. Prior to SOX, when necessary, the SEC sanctioned any accountant including auditors registered to practice before SEC for any infraction. After Enron, Worldcom, etc., Congress decided more oversight was required so they enacted SOX including the PCAOB and stronger penalties. I live in Houston (I can see the old Enron building from my window) and was in school just a couple of years after SOX passed so I heard a lot about this at the time.

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[Author]

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