December 21, 2018

Audit firm Crowe LLP and associated individuals have settled SEC charges arising from significant failures in audits of Corporate Resource Services, Inc., which went bankrupt in 2015 following the disclosure of $100 million in unpaid payroll tax liabilities.  The SEC found that Crowe’s audit team identified pervasive risks in its audit of Corporate Resource Services, but failed to take required steps in response.  Crowe will pay a penalty of $1.5 million and retain an independent compliance consultant.  SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud,