RSM Statement Regarding 2-26-20 SEC Order
On February 26, 2020, RSM US LLP (“RSM US”) entered into a consent order with the SEC. The order relates to specific audit engagements for calendar years 2013 through 2015 involving a former client. In particular, the order addresses RSM US’s system of quality control for staffing the former client’s investment fund audits, focusing, in part, on the use of an internal valuation specialist for complex, hard-to-value financial assets. The SEC has not claimed that any other audits or clients were impacted.
On December 4, 2019, the SEC filed a complaint against RSM US’s former client and its principals alleging, among other things, materially misleading statements made to RSM US as well as claiming violations of the anti-fraud provisions of the federal securities laws. No such claims have been made against RSM US. Moreover, under the order, RSM US is not required to pay a fine or other penalty, and no RSM US personnel are alleged to have violated any laws or regulations.
Since 2015, RSM US has significantly enhanced its quality controls, policies, and procedures in the relevant areas. In the order, the SEC specifically credits RSM US for these enhancements. RSM US continues to strengthen its quality controls, policies, and procedures and will use the undertakings that are part of the settlement to assist with these efforts.
RSM US is committed to the highest standards of integrity and audit quality and looks forward to continuing to provide the excellence in auditing that its clients have come to expect of RSM US.