SEC fines audit firm RSM $950,000 to settle independence violation claim

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) said on Tuesday that it fined public accounting firm RSM US LLP $950,000 to settle claims it violated the agency’s auditor independence rules.

The SEC said RSM, which says on its website it is the country’s fifth-largest accounting firm, provided non-audit services to at least 15 of its audit clients, violating rules that bar audit firms from engaging in certain non-audit relationships while an audit is being conducted.

The non-audit services included corporate secretarial services, payment facilitation, payroll outsourcing and investment adviser services, among others.

RSM also failed to disclose its non-audit relationships in more than 100 audit reports for clients published between 2014 and 2015, violating disclosure rules, the SEC said.

RSM did not admit or deny the regulator’s claims.

In addition to the fine, RSM also agreed to employ an independent consultant to evaluate its current quality controls for compliance, the SEC said in a statement.

Source: Reuters

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