- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-06-21T18:12:00
Marcum agreed to pay $13 million in penalties between settlements with the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) announced Wednesday addressing allegations of widespread quality control and supervision failures stemming from the audit firm’s significant work with special purpose acquisition company (SPAC) clients.
The SEC fined Marcum $10 million, while the PCAOB added a $3 million penalty—its largest ever imposed against an audit firm that is not a member of a global network. The PCAOB, which is overseen by the SEC, will require Marcum to make functional changes to its supervisory structure related to its system of quality control—a first for the regulator.
The SEC will require Marcum to retain an independent compliance consultant to assess its quality control policies and procedures and placed restrictions on the firm accepting new clients among other disciplinary measures.
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A former engagement quality review partner at Marcum agreed to pay a $30,000 penalty and be suspended as part of a settlement with the Securities and Exchange Commission addressing alleged violations of audit standards in his work at diversified holding company Ault Alliance.
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