The Public Company Accounting Oversight Board has permanently revoked the registration of AJ Robbins CPA LLC, and permanently barred its owner, Allan Jeffrie Robbins, from association with any registered firm, while also imposing $150,000 in total fines.
According to the adjudicated disciplinary order from the board, the firm and Robbins violated a number of rules and standards around independence and professional skepticism, and also improperly altered documents and otherwise failed to cooperate with the PCAOB investigation.
The firm had a business relationship with an officer and director of an issuer client that violated independence standards, the order said. It also specifically noted that:
- Between 2016 and 2018, the firm issued a number of audit reports and interim review engagements without first obtaining concurring approval for issuance from an engagement quality reviewer.
- It failed to conduct two issuer audits with due professional care and professional skepticism during 2018.
- Both the firm and Robbins failed to cooperate with a board inspection during 2018, improperly altering audit documentation and making misrepresentations to inspections staff.
The order was based on the initial decision of the PCAOB hearing officer; as it was not appealed by anyone involved, or taken up for further review by the board or the Securities and Exchange Commission, it took effect on Aug. 1.
“Professional skepticism, independence and cooperation with PCAOB inspections are fundamental to auditors’ responsibilities to protect investors. When auditors fail to uphold those responsibilities, the PCAOB will take action,” said board chair Erica Williams, in a statement.
Neither the firm nor their lawyer was immediately available for a comment.
The PCAOB’s announcement is the latest in a recent slew of disciplinary orders; the board has been warning auditors for more than a year that it intends to be aggressive in enforcement.
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