The Public Company Accounting Oversight Board (PCAOB) has censured Breard & Associates. It has revoked the firm’s registration as well as imposing a penalty of $75,000.
Breard & Associates failed to comply with AS 1220 Engagement Quality Review. It failed to obtain an engagement quality review and concurring approval of issuance even though the standards set by the PCAOB was that the engagement quality review should be performed.
PCAOB have also censured Kevin G. Breard, the firm’s CPA. The board have imposed these sanctions on the basis of their findings that the firm and Beard had repeatedly “violated PCAOB rules and standards in connection with 135 audit and attestation engagements by the firm of its broker-dealer clients for fiscal years 2014, 2015, 2016,” according to the disciplinary proceedings report released by the PCAOB.
Disciplinary proceedings will go ahead under section 105(c) of the Sarbanes-Oxley Act of 2002. The board has felt that this is appropriate as it is a matter of public interest and necessary for the protection of investors.
Respondents of the case (Breard & Associates and Kevin Breard) have submitted offers of settlement which the board has determined to accept.
Kevin Breard is the founder, managing partner and principal of Breard & Associates. He is a certified public accountant licensed by the California Board of Accountancy, he also holds licenses in several other states. The board have decided to censure him and bar him from being an associated person of a registered public accounting firm.
The report into the proceeding said: “Breard took or omitted to take actions knowing, or recklessly not knowing, that his actions and omissions would directly and substantially contribute to the firm’s violations of PCAOB rules and standards.”
By Mishelle Thurai