RSM Statement Regarding SEC Order: Sept 2022

On September 30, 2022, RSM US LLP (“RSM US”) entered into a settled order with the SEC.  The order relates to specific audit engagements for fiscal years 2014 through 2017 involving a former client. Two partners and a senior manager additionally entered into a related settled order.

In particular, RSM US’s settled order addresses testing of certain transactions accounted for under principles of bill-and-hold revenue recognition and the assessment of whether potential errors may have required restatement.

The SEC did not bring charges of intentional misconduct, and the SEC previously has publicly stated that the former client deliberately “misled” the RSM US audit team.

The SEC’s order requires RSM US to complete undertakings involving the retention of an independent consultant to review and evaluate certain policies and procedures.  RSM US also will pay a penalty of $3.75 million.

As part of this settlement, RSM US and the individuals neither admitted nor denied the SEC’s allegations.

RSM US continually seeks to enhance its quality controls, policies and procedures. The firm 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.