Estimated reading time: 1 minute, 28 seconds

BDO USA Draws $2M Fine

The Public Company Accounting Oversight Board has fined BDO USA $2 million. It also censured the firm and two audit partners over their handling of audits at AAC Holdings.

The PCAOB said the firm and partner Kevin Olvera failed to properly evaluate three significant estimates that AAC used to value substantially all of its client-related revenue and accounts receivable, while another partner, Michael Musick, failed to exercise due professionalism in his engagement quality review of the 2017 audit.

Musick was found to have accepted the engagement team’s judgments related to the evaluation of the estimates instead of identifying audit work deficiencies.

The body noted that the firm and the partners ignored several red flags that called into question the reasonableness of the estimates. This occurred despite BDO, Olvera, and Musick encountering several red flags that raised doubts about the reasonableness of the estimates.

The board fined Olivera $35,000 and limited his ability to act in certain audit roles. Musick was fined $25,000. Both individuals are required to complete additional Continuing Professional Education (CPE) work.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Read 1503 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings


For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue


Background Color
Text Color


Background Color


Select menu
Google Font
Body Font-size
Body Font-family
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.