SEC Institutes Administrative Proceedings Against Auditor for Deficient Audits Over Three-Year Period
Feb. 8, 2023
File No. 3-21298
February 8, 2023 - The Securities and Exchange Commission today instituted an administrative proceeding against Jia Roger Qian Wang, CPA ("R. Wang") and his firm, Wang Certified Public Accountant, P.C. ("Wang CPA"), alleging multiple violations relating to audits they conducted for a public company.
The Division of Enforcement ("Division") alleges that over a period of three fiscal years while Wang CPA served as the audit firm for a NASDAQ issuer, R. Wang and Wang CPA failed to adequately test management's impairment analysis and document the same. The Division also alleges that R. Wang and Wang CPA took on the issuer as a client despite having insufficient public audit experience; failed to adequately plan their audits; failed to reconcile discrepancies in the issuer's financials and accounting records; and failed to exercise due care. According to the Division, as a result of Respondents' conduct, the issuer filed annual reports containing Wang CPA's materially inaccurate statements that the company's financial statements had been audited in accordance with PCAOB standards.
The Order charges Wang CPA with violating Regulation S-X Rule 2-02(b)(1), and R. Wang with causing Wang CPA's violations; charges R. Wang and Wang CPA with causing violations of Securities Exchange Act of 1934 Section 13(a) and Rule 13a-1 thereunder; and charges R. Wang and Wang CPA with engaging in improper professional conduct within the meaning of Exchange Act Section 4C(a)(2) and Rule 102(e)(1)(ii) of the Commission's Rules of Practice.
The investigation was conducted by Howard Kim, Yitzchok Klug, Nandy Celamy, and Adam Grace, under the supervision of Associate Regional Director Sheldon L. Pollock, of the New York Regional Office. The administrative proceeding will be litigated by Co-Regional Trial Director Alexander Vasilescu, Mr. Kim, and Mr. Klug.