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PCAOB Sanctions Firm for Major Audit Failures
22 Dec
Summary
- Partner Jennifer Crofoot issued unqualified opinions without proper review.
- Fruci & Associates II failed quality control and documentation.
- Crofoot is barred from the profession for three years.
The Public Company Accounting Oversight Board (PCAOB) has imposed disciplinary actions against Fruci & Associates II and its former audit partner, Jennifer Ann Crofoot. These sanctions stem from violations found in audits conducted for four Nevada-based companies, where the firm and Crofoot failed to adhere to auditing regulations and standards.
Jennifer Ann Crofoot, who served as the engagement partner for these audits, authorized unqualified audit reports despite insufficient or nonexistent procedures for material accounts. Furthermore, these reports were issued without the mandatory concurring approval from an engagement quality reviewer. Fruci & Associates II also neglected its quality control duties, with documented weaknesses in audit documentation and performance requirements, preventing effective oversight.
As a result of these findings, Jennifer Ann Crofoot has been formally censured and barred from working with any registered public accounting firm. She may seek reinstatement after three years, contingent on completing 40 hours of continuing professional education specific to PCAOB auditing standards. Fruci & Associates II faces a censure and a $50,000 civil penalty, alongside requirements to implement remedial measures to correct identified lapses and improve future compliance.
