{"id":7434,"date":"2024-06-13T11:16:29","date_gmt":"2024-06-13T15:16:29","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=7434"},"modified":"2024-06-13T11:16:34","modified_gmt":"2024-06-13T15:16:34","slug":"enforcement-timing-company-versus-auditor-time-lag","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/enforcement-timing-company-versus-auditor-time-lag\/","title":{"rendered":"Enforcement Timing \u2013 Company Versus Auditor Time Lag"},"content":{"rendered":"<p>In <a href=\"https:\/\/seciblog.pli.edu\/company-and-auditor-investigations-each-have-their-own-pace\/\">this blog post<\/a> we explored the almost two-year time lag between an SEC enforcement against a company and a related enforcement against the company\u2019s auditor.\u00a0 In a pair of more recent cases this time lag is much shorter. \u00a0In this August 15, 2023, <a href=\"https:\/\/www.sec.gov\/files\/litigation\/admin\/2023\/33-11222.pdf\">Accounting and Auditing Enforcement Release<\/a>, the SEC enumerates a number of material misstatements in the financial statements of Ault Alliance, Inc. (Ault). Issues involved included failure to disclose interests in related person transactions, improper recording of purported consulting services and erroneous accounting for investments.\u00a0 Ault made multiple restatements.\u00a0 The <a href=\"https:\/\/www.sec.gov\/files\/litigation\/admin\/2023\/33-11222.pdf\">Release<\/a> also asserts that Ault failed to maintain accounting and disclosure controls.<\/p>\n<p>On January 18, 2024, only five months later, the SEC brought an <a href=\"https:\/\/www.sec.gov\/files\/litigation\/admin\/2024\/34-99384.pdf\">Administrative Proceeding<\/a> against the company\u2019s auditor.\u00a0 The case against the auditor is complex, involving Ault and several other engagements.\u00a0 In addition, it is interesting that this action was brought using the SEC\u2019s internal administrative court processes.\u00a0 Even with these complexities, the time lag between the company enforcement and the administrative proceeding against the auditor is notably shorter.<\/p>\n<p>As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this blog post we explored the almost two-year time lag between an SEC enforcement against a company and a related enforcement against the company\u2019s auditor.\u00a0 In a pair of more recent cases this time lag is much shorter. \u00a0In this August 15, 2023, Accounting and Auditing Enforcement Release, the SEC enumerates a number of &hellip; <a href=\"https:\/\/seciblog.pli.edu\/index.php\/enforcement-timing-company-versus-auditor-time-lag\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Enforcement Timing \u2013 Company Versus Auditor Time Lag<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[261],"tags":[],"coauthors":[154],"class_list":["post-7434","post","type-post","status-publish","format-standard","hentry","category-enforcement"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/7434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=7434"}],"version-history":[{"count":0,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/7434\/revisions"}],"wp:attachment":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=7434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=7434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=7434"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/coauthors?post=7434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}