Overworked SPAC Auditor’s Lapses Lead to $2 Million Fine

WithumSmith+Brown PC agreed to pay $2 million to settle charges that it shirked US audit rules as it churned out audits of blank-check companies that briefly were Wall Street’s favorite way to take companies public.

The Public Company Accounting Oversight Board said in an order Wednesday that the New Jersey firm’s internal safety checks meant to deliver high-quality audits buckled as Withum added hundreds of special purpose acquisition companies as clients. SPACs are publicly traded shell companies whose aim is to raise money and find an operating company to take public via merger.

Source: Overworked SPAC Auditor’s Lapses Lead to $2 Million Fine