Accounting
PCAOB Gives CPA Firm AJ Robbins the Heave-Ho
AJ Robbins' PCAOB registration was permanently revoked, its owner was barred for life, and the firm was fined $150,000 for audit failures.
Aug. 18, 2023
The Public Company Accounting Oversight Board (PCAOB) permanently revoked the registration of Denver-based accounting firm AJ Robbins CPA on Aug. 17 and jointly fined the firm and its owner Allan Jeffrie Robbins $150,000 for independence and professional skepticism failures, as well as for the improper alteration of documents.
Robbins, the managing partner of the firm and its sole owner, also was permanently barred from associating with any registered public accounting firm, the PCAOB said on Thursday.
The PCAOB revealed the following egregious acts that led to the sanctions of Robbins and his firm:
- AJ Robbins issued multiple audit reports and interim review engagements between 2016 and 2018 without first obtaining concurring approval for issuance from an engagement quality reviewer.
- The firm failed to conduct two issuer audits with due professional care and professional skepticism during 2018.
- The firm and Robbins failed to cooperate with a PCAOB inspection during 2018 by improperly altering audit documentation and making misrepresentations to the PCAOB’s inspections staff.
- The firm failed to maintain its independence from an issuer client in violation of SEC and PCAOB rules due to a business relationship with an officer and director of that issuer client.
- Robbins directly and substantially contributed to the firm’s violations.
“Professional skepticism, independence, and cooperation with PCAOB inspections are fundamental to auditors’ responsibilities to protect investors. When auditors fail to uphold those responsibilities, the PCAOB will take action,” PCAOB Chair Erica Williams said in a press release.
The sanctions against Robbins and his firm went into effect on Aug. 1.