April 19, 2024
They Never Learn: PCAOB Announces Test Cheating Actions
As noted in this recent statement from PCAOB Chair Erica Williams, the PCAOB brought action against two accounting firms involving allegations of exam cheating. Since 2021, the PCAOB has sanctioned nine registered firms for exam cheating. Chair Williams stated:
I want to be very clear: The PCAOB will not tolerate exam cheating nor any other unethical behavior, period.
Impaired ethics erode trust and threaten the investor confidence our system relies on. The PCAOB will take action to hold firms accountable when they fail to enforce a culture of honesty and integrity.
This Board set a goal to strengthen PCAOB enforcement, and we are doing just that. As of today, the PCAOB has imposed $34 million in penalties this year alone, and it’s only April.
We set a record in 2022. We broke that record in 2023. And we are breaking it again today.
Let today’s news be a clear warning to those who break the rules – if you put investors at risk, there will be consequences.
These actions involved widespread answer sharing for internal training tests.
– Dave Lynn