Table 3.

Example activities sanctioned by the PCAOB

Category	Category description	Activity	Sanctions	Number
1	Censure	Failure to properly evaluate a material component of an issuer’s financial statements—its sales returns reserve	Censure	17
2	Continuing professional education	Failure to perform or ensure the performance of adequate audit procedures on material accounts, and failure to properly supervise engagement team personnel	Censure and continuing professional education	1
3	Fine	Failure to comply with the cooling-off requirements of Auditing Standard No. 7, Engagement Quality Reviews	Censure and fine	3
4	Temporary suspension of activities	Failed to properly assess the risk of material misstatement, to properly evaluate and use a specialist, to sufficiently test revenue, and to communicate with the audit committee	Censure, continuing education, and suspension of activities for one year	21
5	Bar from association with the CPA’s registered firm or revocation of registration	Alteration of documents prior to inspection and failure to cooperate in the inspection Numerous and repeated violations of PCAOB rules and auditing standards in auditing the financial statements of three issuers	Censuring, 40 h of continuing professional education, and barring from association with the CPA’s registered firm Revocation of registration of the CPA’s firm	123
Total				165