Auditor Charged for Failure to Register with PCAOB and Multiple Audit Failures

The Securities and Exchange Commission today announced the institution of administrative proceedings against a Texas-based CPA for allegedly failing to register his firm with the Public Company Accounting Oversight Board (PCAOB) and alleged wholesale failures in auditing and reviewing the financial statements of a public company client. According to the SEC’s order, the Enforcement Division and the Office of the Chief Accountant (OCA) allege that Christopher Knauth falsely represented to a public company audit client that his firm was registered with the PCAOB. The Enforcement Division and OCA further allege that Knauth eventually filed an application to register his firm with the PCAOB, but the PCAOB repeatedly informed him over a nine-month period that the application was incomplete.