Another Vancouver-headquartered public company auditing firm has recently been penalized by the United States regulator overseeing market regulations, bringing the total to 10 such companies since March 2021.
The board oversees companies that file with the U.S. Securities and Exchange Commission or otherwise sell securities in the U.S., in order to protect the interests of investors.“This latest round of orders shows that firms cannot neglect their responsibilities to keep audit committees informed and report required information to the PCAOB,” said Robert E. Rice, director of the PCAOB’s division of enforcement and investigations.
The concerns arose around auditing of B.C.-registered GreenPower Motor Company Inc. when the firm failed to document tax return preparation and consent services. “Grant Thornton Canada failed to document pre-approval from Patagonia’s audit committee for Grant Thornton UK to provide these tax return preparation services,” and “Grant Thornton Canada also failed to describe in writing to Patagonia’s audit committee the scope of the tax return preparation services, the fee structure for the engagement, and any oral agreement between Grant Thornton Canada and Patagonia relating to the tax services.