SEC Accounting and Auditing Enforcement - Essay ExampleIn this regard, The Securities and Exchange Commission announced charges against three auditors who violated federal security laws. They failed to comply with the U.S. auditing standards in conducting their audits. Among the three audit failures and in their SEC enforcement efforts, the one on WOWJOINT Audits is the most shocking. Wowjoint is a company with its headquarters and operations in and around Beijing, China. Its ordinary shares, warrants, and units are registered with the commission pursuant to Section 12(b) of the Exchange act. The manner in which its audits are conducted makes it the most shocking given the series of the failures and the magnitude of the same. The facts around these audit starts by stating that there was no adequate planning and supervision of the audits as required by the PCAOB Standards. This means that in the first instance the Auditors did not possess adequate knowledge of the firm they were auditing as required by the standards.
