1.What specific client-related matters prompted Goldstein and Morris’s decision to conceal certain information from the PCAOB?
The specific clients are New York Film Works, Inc. (“NYFW”) and RTG Ventures, Inc.
(“RTG”).The GM CPAs were trying to formulate and carry out a plan to create and back date certain documents and place them in the firm’s audit files before inspections review the files. Because the GM CPAs had failed to comply with certain PCAOB standards in connection with the preparations and issuances of audit reports for NYFW and RTG.
2.What sanctions were imposed on the firm, the managing partner, and the two other partners involved in the investigation? Were these sanctions fair?
The sanctions By this Order, the Public Company Accounting Oversight Board (“Board” or
“PCAOB”) is revoking the registration of Goldstein and Morris CPAs, P.C., and barring Edward B. Morris from being an associated person of a registered public accounting firm. To me that was fair because the board was trying to protect the investor and public interest and also the prevent another case that would happen like that again.