The Securities and Exchange Commission said they charged Malcolm Pollard of Erie, Pa., and Wilfred Hanson of Irvine, Calif., with numerous deficiencies in their auditing work, and each of the defendants had settled the actions against them with agreements to stop doing accounting work for any publicly traded company or for any firm regulated by the SEC.
The third auditor charged by the SEC, John Kinross-Kennedy, also of Irvine, Calif., is contesting charges that six audits he performed included what the SEC called "significant deficiencies."
In addition, the SEC said Kinross-Kennedy failed to obtain a standard quality control process called engagement quality reviews for more than 30 other audits he performed.
Kinross-Kennedy also "falsely represented that he conducted his audits in accordance with Public Company Accounting Oversight Board standards," the SEC said.
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