PCAOB Cracks Down on Raines & Fischer LLP for Trying to Pull the Wool Over Inspectors’ Eyes

Raines & Fischer LLP, once a player in the auditing world, is now out of the game—for good. The Public Company Accounting Oversight Board (PCAOB) has permanently revoked the firm’s registration after uncovering shocking attempts to deceive inspection staff, coupled with a laundry list of other compliance failures. In a disciplinary order announced today, the PCAOB didn’t mince words or actions, hitting the firm and three of its partners with stiff penalties and professional bans.

In 2020 and 2022, the PCAOB showed up to inspect Raines & Fischer’s work. But instead of transparency, the inspectors found a web of deception. The firm’s personnel had tampered with audit work-papers, falsifying documentation to cover up their shortcomings. The tactics were brazen: manipulating computer clocks, creating fake PDFs, and presenting altered work-papers as genuine.

Leading the charge:

• Steven Sarrel, who spearheaded the tampering before a 2020 inspection of a broker-dealer audit.
• Brian Uhlman, who took a similar route in 2022 for two broker-dealer audits under his purview.
• William Fischer, the firm’s managing partner, who knew about the fraud and did nothing to stop it, allowing the doctored documents to be handed over to the PCAOB.

The inspectors were left in the dark as none of the trio disclosed the deceit during their meetings.

But That’s Not All

The PCAOB’s investigation revealed that the issues ran deeper than just doctored documents. The firm’s quality control system was practically non-existent, leading to repeated failures in fundamental auditing practices. Among the violations:

• Missing or incomplete workpapers for seven broker-dealer engagements.
• Ignoring the requirement to file key Form 2 documentation for four years running.
• Skipping critical steps like testing internal controls or properly reviewing audit engagements.

“These violations didn’t just happen in a vacuum—they were part of a broader pattern of negligence and, frankly, dishonesty,” said Robert E. Rice, who heads the PCAOB’s Division of Enforcement and Investigations.

Raines & Fischer, along with Sarrel, Uhlman, and Fischer, have now felt the full weight of the PCAOB’s enforcement hammer. The sanctions include:

• Firm Banished: The PCAOB permanently revoked the firm’s registration, essentially shutting it down for good.
• Partners Barred: Uhlman is banned from working with PCAOB-registered firms for five years, with an option to apply for reinstatement if he meets extra professional education requirements. Fischer and Sarrel face three-year bans with similar conditions for reentry.

• Financial Penalties: The firm was fined $200,000 - Uhlman owes $125,000, Fischer $75,000, and Sarrel $65,000.

“Trying to deceive the PCAOB doesn’t just harm the inspection process—it undermines the trust that investors and markets place in financial reporting,” said PCAOB Chair Erica Y. Williams.

The fallout from this case serves as a reminder to the auditing world: cutting corners—or worse, trying to cover them up—can be career-ending. The PCAOB’s decision to take strong, decisive action reinforces its mission to protect investors and uphold the integrity of financial markets.

For the rest of the industry, it’s a wake-up call to double down on compliance, transparency, and professionalism—or risk facing a similar reckoning.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.