The Public Company Accounting Oversight Board (PCAOB) has announced a settlement with Grant Thornton regarding quality control violations and audit failures. One of the issues in the matter was the lack of professional skepticism over prospective financial information. The auditor “failed to sufficiently question management's estimates, even when confronted with evidence that was inconsistent with those estimates,” PCAOB enforcement and investigations director Claudius Modesti said in a release. Grant Thornton has received a civil penalty of $1.5 million and censures in the settlement, which was in connection with audits of Bancorp. Grant Thornton and an audit partner also penalized have neither admitted nor denied the findings.
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