The SEC suspended three accountants for improper
professional conduct, including "predating" audit
documentation after falling behind schedule during an integrated
audit of another company.
According to the SEC Order, three accountants failed to
accurately complete an audit of a company's 2013 Form 10-K. After the audit firm fell behind
schedule, one of the accountants instructed the audit team to state
that all working papers and audit programs were complete, even if
work still was remaining. The audit team subsequently
"predated" audit documentation by signing blank or
incomplete work papers and audit programs.
The SEC found that the two other accountants should have
identified the audit deficiencies before releasing the
documentation.
