Guam – Compliance Week is reporting that the Public Company Accounting Oversight Board [PCAOB] has denied the registration request from Deloitte & Touche Guam.
Deloitte & Touche Guam applied for registration in January of this year. But the PCAOB denied the registration request “because the firm did not demonstrate the ‘degree of care’ expected of a public accounting firm operating in U.S. capital markets.”
Compliance Week reports that according to the above “Order Denying Registration”, Deloitte & Touche Guam audited the financial statements for the Bank of Guam for six years before applying for registration. That is a violation of the board’s rule that the firm must be registered with the board before it can perform such audit work
The Bank of Guam says Deloitte & Touch Guam began serving as it independent auditor for its fiscal year ended Dec. 31, 2003, just as the Sarbanes-Oxley Act was taking effect, putting the regulation of audit firms into motion.
The PCAOB Order denying registration indicates that Deloitte & Touche can re-apply. And if they do, the board will not call for a hearing specifically on the conduct that led to the denial before considering any new application. In Deloitte’s case, the board makes that promise only if the application is submitted after Sept. 1, 2012.