“As gatekeepers, auditors perform a critical role in maintaining investor confidence in issuers’ financial statements. Registration with the PCAOB and compliance with PCAOB auditing standards are essential to this gatekeeping function,” said Carolyn Welshhans, associate director of the SEC’s Division of Enforcement.

The Enforcement Division and Office of the Chief Accountant (OCA) allege that Knauth engaged in improper professional conduct, willfully aided and abetted and caused his firm’s failure to register with the PCAOB, and willfully aided and abetted and caused his audit client’s reporting violations. The administrative proceeding against Knauth will be scheduled for a public hearing before the SEC to determine whether the Enforcement Division and OCA have proven the allegations in the order and what, if any, remedial actions are appropriate.