SEC Charges FTX Audit Firm With Negligence And Independence Violations
The US Securities and Exchange Commission (SEC) has settled with audit firm Prager Metis for $1.95 million over misconduct related to audits of the failed cryptocurrency exchange FTX. Prager Metis will pay a civil penalty of $745,000 and implement remedial measures, including hiring an independent consultant to review its audit policies. The SEC accused Prager of failing to comply with Generally Accepted Auditing Standards (GAAS) during audits from February 2021 to April 2022, leading to significant deficiencies. Additionally, Prager Metis faces charges for violating auditor independence rules, resulting in $1 million in penalties and $205,000 in disgorgement and interest. The SEC emphasizes the importance of auditor independence and compliance in the crypto sector.
