PCAOB Fines Vancouver-Based Accounting Firm De Visser Gray $60,000 for Audit Rule Violations

The Public Company Accounting Oversight Board (PCAOB) has fined Vancouver-based accounting firm De Visser Gray $60,000 for failing to comply with U.S. auditing rules and quality control standards. The violations occurred from April 2019 through January 2024, putting the investing public at risk.

According to PCAOB Chair Erica Williams, all PCAOB-registered firms must adhere to the rules and standards set forth by the organization, regardless of their location. Failure to do so will not be tolerated.

During inspections in 2019 and 2022, PCAOB staff found significant deficiencies in De Visser Gray’s quality control system. The firm had been using audit methodology and practice materials that were only in accordance with Canadian auditing standards, not PCAOB standards. This led to deficiencies in audits related to long-lived assets.

Despite being informed of these deficiencies, De Visser Gray continued to use non-compliant audit methodology and practice materials. As a result, two out of three audits reviewed in 2022 had deficiencies, with an error rate of 67%.

In addition to the fine, De Visser Gray is required to establish and/or revise its quality control policies and procedures to ensure compliance with all applicable audit requirements. The firm must also provide training to its staff on PCAOB rules and standards.

PCAOB director of enforcement and investigations, Robert Rice, emphasized the importance of quality control systems in ensuring compliance with standards. Firms that fail to implement such systems will be held accountable for their failures.