Toymaker Mattel Agrees to Pay $3.5 Million SEC Fine for Misstatements in 2017 Earnings

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Toymaker Mattel has agreed to pay a $3.5 million fine to settle charges related to misstatements in two quarters of earnings in 2017, the Securities and Exchange Commission announced Friday.

This Pulitzer Prize-Nominated Columnist Interviewed Dozens of Aging People. Here's What He Learned About the ‘Spiritual Side' of RetirementThe commission is separately pursuing enforcement action against a former auditor at PricewaterhouseCoopers, an international tax consulting firm, who oversaw the work.

"An auditor's adherence to professional standards and independence is critical to preserving investors' trust in a company's financial statements," Alka Patel, associate director of the SEC's Los Angeles Regional Office, said in a statement."Auditors who advise their clients on who to hire will have an interest in the success of such hires and could therefore be less critical of their effectiveness, all of which undermines the auditor's independence.

Joshua Abrahams, who is identified in the report as the PwC auditor involved, knew about the error but failed to share it with Mattel's audit committee, the SEC found. Abrahams also provided restricted human resource advice to Mattel, it said. "We're pleased to have the matter behind us. While we're not going to comment on the underlying facts, we appreciate the SEC's recognition of the company's remedial measures," a Mattel company spokesperson said Friday.

 

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