SEC Charges Audit Firm Crowe U.K., CEO, and Auditor for Deficient Akazoo Audit

The United States Securities and Exchange Commission (SEC) has charged the audit firm Crowe U.K. LLP, its CEO Nigel Bostock and senior auditor Matthew Stallabrass with deficient audit of music streaming company Akazoo Limited. The SEC's order finds that Crowe U.K.'s Akazoo audit team had almost no experience or training in Public Company Accounting Oversight Board (PCAOB) standards, as the firm claims, and overlooked red flags. As a result, Akazoo was able to falsely claim $120 million in revenue when in fact they had negligible amounts of revenue. In order to settle the SEC's charges, Crowe U.K., Bostock and Stallabrass have agreed to pay penalties, cease and desist from committing further violations and implement undertakings related to the firm's acceptance of new clients. In addition, Bostock and Stallabrass will be suspended from appearing or practicing before the SEC as accountants for five and two years respectively.