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January 30, 2023

BDO Spain Took a Siesta on Some PCAOB Paperwork

Audit firms still seem to be getting used to having a regulator that watches their every move. Or failure to move in the case of BDO Auditores, SLP (aka "BDO Spain").

[T]he Firm became a respondent in two separate disciplinary proceedings initiated by the Instituto de Contabilidad y Auditoria de Cuentas ("ICAC"), the foreign auditor oversight authority in Spain. PCAOB rules required the Firm to complete and file a PCAOB special report on Form 3 within 30 days of becoming aware that it had become a respondent in those disciplinary proceedings. The Firm became aware of the disciplinary proceedings in May 2012 and February 2014, respectively, yet failed to file a Form 3 reporting the proceedings until May 2015, after the PCAOB commenced its investigation, and well after the 30-day reporting deadline.

Yes, well after the 30-day reporting deadline, I'd say. It's kinda silly because the two incidents that BDO Spain had with ICAC were related to Spanish companies that aren't even US issuers. Also, there's this:

The Firm's internal compliance and reporting systems failed to identify the proceedings before ICAC as being reportable to the PCAOB and ensure timely reporting pursuant to PCAOB rules.

It's only going to cost the firm $10k, but still. This is the fifth largest accounting firm on earth we're talking about. Qué estupido.

[PCAOB Order]

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