Audit firm RSM charged with violating independence rules
The U.S. unit of global accounting firm RSM International
was charged Tuesday with violating the SEC’s auditor independence rules on at least 100 audit reports for 15 or more audit clients.
The SEC
charged RSM US LLP in an internal administrative order (pdf) and didn’t go to court.
The firm
settled the charges without admitting or denying the SEC’s findings. It agreed to pay a penalty of $950,000.
London-based RSM International has about 43,000 employees in more than 120 countries.
The U.S. unit, formerly known as McGladrey LLP, is headquartered in Chicago and has about 80 offices across the country. It’s the fifth largest accounting firm in the United States.
The SEC
said RSM US violated independence rules by providing non-audit services to audit clients,
Independence violations were also caused by a partner at an RSM affiliate in Australia who served on the board of a U.S. audit client.
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