"A firm's system of quality control should reasonably assure that personnel with the right skills and experience are assigned to public company audits. When quality controls concerning personnel assignment and oversight fail, serious violations of auditing standards can result, as they did here, to the detriment of investors," said James R. Doty, PCAOB Chairman. "Effectively designed and operated quality control systems are crucial to conducting audits in compliance with PCAOB standards. This matter should serve as a case study for what not to do."

The PCAOB also sanctioned David M. Burns, a former Grant Thornton partner, who served as the engagement partner for the 2013 Bancorp audit, for his violations of PCAOB auditing standards in that audit. Burns was barred from associating with a PCAOB-registered accounting firm, with the right to petition to remove the bar after one year, with further limits on his auditing activities for an additional year, censured, and ordered to pay a $15,000 penalty. Neither of the respondents admitted or denied the findings contained in the Board's orders.