rager Metis CPAs are set to pay approximately $2 million dollars in order to settle with the SEC to resolve issues related to the Company’s audits of FTX exchanges. The SEC accused Prager of inaccurate and false claims that it complied with GAAS in two FTX audit reports between February 2021 and April 2022.
Auditor Independence Violations
In a recent settlement, Prager was admitted to the charges by the SEC, and agreed to resolve the charges associated with violating auditor independence rules. The settlement involves a $1million dollars civil penalty as well as $205,000 in disgorgement with prejudgment interest.
The SEC’s position on Crypto Auditing
The SEC highlights the importance of correct auditing of the crypto sector. The SEC’s Acting Chief of Digital Assets and Cyber Unit, cautioned against the shortcuts in compliance in the crypto asset markets.
SEC Audits Crypto CPA Firm
The case regarding the SEC taking action against Prager Metis CPAs highlights the importance of accurate and proper auditing for crypto businesses. Given that the sector is relatively young, regulators are gradually paying more attention to financial activities in order to protect investors and maintain the market’s integrity.
