The Securities and Exchange Commission (“SEC”) today announced settled charges against Francis Decker, a CPA who acted as the lead engagement partner at Prager Metis CPAs, LLC on its audits of the now-defunct crypto asset trading platform FTX, relating to Decker’s conduct during the FTX audits. The SEC had previously settled charges with Prager Metis in connection with its FTX audits.
According to the SEC’s order, beginning in February 2021, Decker led a Prager Metis team in conducting audits of the financial statements of FTX. The SEC’s order finds that the audits were not conducted in accordance with Generally Accepted Accounting Standards (GAAS) and that Decker’s negligent conduct during those audits resulted in a violation of those applicable professional standards. Specifically, the SEC’s order finds that the foundational failure to meet GAAS stemmed from the fact that Decker did not have a sufficient understanding of FTX, or the crypto asset markets in which it operated and the engagement team that Decker assembled collectively lacked the competence, experience, and knowledge to appropriately conduct the audits.
Source: SEC Institutes Settled Order as to Audit Engagement Partner for Failures Related to Audit of FTX
