According to TechFlow, international accounting firm Prager Metis agreed to pay US$745,000 to resolve allegations by the U.S. Securities and Exchange Commission (SEC) regarding its improper audit of FTX before its collapse in November 2022.
The SEC’s settlement announced Tuesday also includes a second finding against Prager Metis, alleging that the firm violated audit independence rules in its audits of more than 200 companies between 2017 and 2020. Prager Metis agreed to pay a $1.2 million civil penalty and prejudgment interest to resolve those charges.
The SEC accused Prager Metis of falsely stating in two audit reports it issued for FTX in 2021 and 2022 that the audits complied with Generally Accepted Auditing Standards (GAAS), when in fact the company "failed to comply with GAAS in multiple aspects of the audit."
