Friedman latest fined in PCAOB crackdown on unregistered auditor use

Accounting firm Friedman agreed to pay a $100,000 penalty to settle charges by the Public Company Accounting Oversight Board (PCAOB) it over-relied on the work of unregistered Chinese firms across 12 public company audits.

The PCAOB announced Monday it found Friedman allowed unregistered firms Peking Certified Public Accountants (CPAs) and Beijing Baijielai Financial Consulting Co. to play a substantial role—either performing more than 20 percent of total audit hours or incurring more than 20 percent of total audit fees—in its work during fiscal years 2017 and 2018. The regulator faulted Friedman for failing to establish and implement adequate quality control policies and procedures regarding the use of other accounting firms.

Without admitting or denying the PCAOB’s findings, Friedman agreed to be censured.