Ignored Fraud Risks? Hired a Barred Partner? PCAOB Isn’t Playing Around
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What just happened
On July 11, 2025, the Public Company Accounting Oversight Board (PCAOB) slapped Goldman & Company, CPA’s, Raymond Chabot Grant Thornton, and PWR CPA with sanctions for falling short on basic compliance rules. These aren’t obscure technical errors—they’re fundamental audit and reporting failures that threaten trust in your work.
The Violations
Goldman & Company didn’t wrap up its audit file for a client on time violating audit standards. Proper documentation isn’t just admin, it's the paper trail investors rely on.
Raymond Chabot Grant Thornton (Grant Thornton’s Quebec member-firm) missed filing timely “special reports” as required, failing to inform on local regulator proceedings. Deadline misses on disclosures = less transparency for investors.
PWR CPA missed the mark on several fronts:
❌ Skipped necessary inquiries into fraud risks
❌ Failed to flag or assess critical audit matters (CAMs) properly
❌ Filed required forms late + they didn’t disclose hiring a partner barred by the SEC.
The Penalties
Goldman & Company: $25,000 fine + commitments to revamp documentation policies and add yearly training.
Raymond Chabot: $30,000 fine + must stick to revamped reporting rules.
PWR CPA: $60,000 penalty, formal censure, plus reminders to document fraud risk reviews and Form filings before registering for audits.
Why This Matters for You
“Failures to document… or make required disclosures on time undermine trust in the audit”
When your audit tick-boxes aren’t in place—or those forms aren’t filed—you not only expose your firm to fines and reputational damage, but you also dismantle investor confidence.
PCAOB’s director Robert Rice echoed the message:
“These actions show that the PCAOB will hold firms accountable that fail to do so.”
Your Takeaway: Don’t gamble on compliance
Dust off your review checklists: is your documentation fully assembled and filed—before reporting?
Track every reporting deadline—special or routine. Miss them, and investors get left in the dark.
Treat fraud-risk procedures like non-negotiables: inquiry logs, audit-committee communications as they’re not optional extras.
Source: Accounting Today article
