Audit and Accounting: audits "so deficient they amounted to no audits at all"

Moore and his company have entered into an agreement with the SEC.

Moore, 55, lives in Las Vegas Nevada and is admitted to practise audit in both Nevada and Texas. His company, Moore and Associates, is incorporated in Nevada registered with the Public Company Accounting Oversight Board (PCAOB)

In August this year, the SEC filed a complaint against Moore and the company in a civil action alleging breaches of various rules. A consent order included injunctions and an order that Moore and the company be jointly and severally liable to pay a penalty of USD 130,000 plus a "disgorgement" of USD179,750 plus pre-judgment interest of USD10,151.59.

The Commission alleged that Moore and his company issued unqualified audit reports for Ethos Environmental, Inc, Tombstone Exploration Corporation, Studio One Media Inc, Biocoral Inc, Centergistic Solutions, Inc and Standard Drilling, Inc. for various periods, but all within the timeframe 2006 to 2008. Moore certified, falsely, that the audits met OCAOB accounting standards.

The SEC also alleged that "the audits ... were so deficient that they amounted to no audits at all."

Additionally, says the SEC, Moore's employees "lacked adequate technical training and proficiency as auditors and Moore.. failed to train or supervise these employees, audits were not properly planned and Moore.. failed to obtain sufficient competent evidential matter to afford a reasonable basis for an opinion regarding the financial statements." It also accused Moore and his firm of failing to respond to so-called "red flags" that indicated that financial statements were materially mis-stated.

Moore offered the SEC a deal - and the SEC "deems it appropriate and in the public interest to impose the sanction agreed to in the Respondent's Offer."

The sanction? "it is hereby ordered, effectively immediately, that the Respondents are suspended from appearing or practising before the Commission as accountants."

So, no audit of public companies, then.