IN THE MATTER OF FREDERICK A. KADEN & CO. AND FREDERICK A.
Frederick A. Kaden & Co. and its CPA, Frederick A. Kaden, were charged by the SEC with willfully violating Sarbanes-Oxley Act Section 102(a) by issuing a 2004 audit report for a public company without PCAOB registration, leading to administrative proceedings seeking potential censure or permanent bar from practicing before the SEC.
The U.S. Securities and Exchange Commission (SEC) initiated administrative proceedings against Frederick A. Kaden & Co. and Frederick A. Kaden, CPA, for issuing an audit report on a public company’s 2004 financial statements without being registered with the Public Company Accounting Oversight Board (PCAOB), as required by Section 102(a) of the Sarbanes-Oxley Act since October 22, 2003. The SEC alleged the violation was willful and rendered the firm and individual unqualified to practice before the Commission, with no claims of financial misstatement or monetary fraud involved. Proceedings under Section 4C of the Securities Exchange Act and Rule 102(e) seek to determine whether they should be censured or permanently barred from appearing before the SEC as accountants.
The U.S. Securities and Exchange Commission (SEC) filed an administrative order against Frederick A. Kaden & Co. and its principal, Frederick A. Kaden, CPA, for violating Section 102(a) of the Sarbanes-Oxley Act of 2002 by preparing and issuing an audit report on a public company’s 2004 financial statements without being registered with the Public Company Accounting Oversight Board (PCAOB). This registration requirement became mandatory on October 22, 2003, and the SEC alleged the firm and Kaden acted willfully in ignoring it. The charge did not involve financial misstatements, fraud, or misrepresentation of financial data, but rather a failure to comply with the statutory registration regime for auditors of public companies. The SEC initiated proceedings under Section 4C of the Securities Exchange Act and Rule 102(e) of its Rules of Practice to determine whether Kaden & Co. and Kaden should be censured or permanently barred from appearing or practicing before the Commission. A hearing before an administrative law judge was scheduled to allow the respondents to contest the allegations and present their defense. The judge was directed to issue an initial decision within 300 days of service of the order. No monetary penalties were sought, as the violation was purely regulatory in nature, focused on professional qualification and compliance with PCAOB requirements.
Extracted insights
- person administrative law judge
- company frederick a. kaden & co.
- agency Securities and Exchange Commission
- Frederick A. Kaden & Co. prepared and issued audit report on financial statements of public company in 2004
- Frederick A. Kaden participated in preparation and issuance of audit report on financial statements of public company in 2004
- Frederick A. Kaden & Co. failed to register with Public Company Accounting Oversight Board
- Frederick A. Kaden & Co. willfully violated Section 102(a) of Sarbanes-Oxley Act of 2002
- SEC instituted administrative proceedings against Frederick A. Kaden & Co. and Frederick A. Kaden
- Sarbanes-Oxley Act of 2002 prohibits unregistered accounting firms from preparing or issuing audit reports after October 22, 2003
- Administrative Law Judge directed to issue initial decision within 300 days from date of service of Order
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES EXCHANGE ACT OF 1934 Release No. 56430 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2710 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12791 IN THE MATTER OF FREDERICK A. KADEN & CO. AND FREDERICK A. KADEN, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice (Order) against Frederick A. Kaden & Co. (Kaden & Co.) and Frederick A. Kaden, CPA (Kaden). The Order alleges that Kaden & Co. prepared and issued and Kaden participated in the preparation and issuance of an audit report on the financial statements of a public company in 2004, without first registering with the Public Company Accounting Oversight Board (Board). Section 102(a) of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) prohibits accounting firms not registered with the Board from preparing or issuing audit reports with respect to any issuer after October 22, 2003. The Order alleges that, by this conduct, Kaden & Co. and Kaden lacked the requisite qualifications to represent others and that Kaden & Co. willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Kaden & Co. and Kaden pursuant to Section 4C(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 102(e)(1)(i) of the Commission’s Rules of Practice, and additionally as to Kaden & Co., Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, and whether they should be censured or temporarily or permanently denied the privilege of appearing or practicing before the Commission as an accountant. A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true, to provide Kaden & Co. and Kaden an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate. The Order directs the Administrative Law Judge to issue an initial decision in this matter no later than 300 days from the date of service of the Order.
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES EXCHANGE ACT OF 1934 Release No. 56430 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2710 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12791 IN THE MATTER OF FREDERICK A. KADEN & CO. AND FREDERICK A. KADEN, CPA The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice (Order) against Frederick A. Kaden & Co. (Kaden & Co.) and Frederick A. Kaden, CPA (Kaden). The Order alleges that Kaden & Co. prepared and issued and Kaden participated in the preparation and issuance of an audit report on the financial statements of a public company in 2004, without first registering with the Public Company Accounting Oversight Board (Board). Section 102(a) of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) prohibits accounting firms not registered with the Board from preparing or issuing audit reports with respect to any issuer after October 22, 2003. The Order alleges that, by this conduct, Kaden & Co. and Kaden lacked the requisite qualifications to represent others and that Kaden & Co. willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Kaden & Co. and Kaden pursuant to Section 4C(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 102(e)(1)(i) of the Commission’s Rules of Practice, and additionally as to Kaden & Co., Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice, to determine whether the allegations in the Order are true, and whether they should be censured or temporarily or permanently denied the privilege of appearing or practicing before the Commission as an accountant. A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true, to provide Kaden & Co. and Kaden an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate. The Order directs the Administrative Law Judge to issue an initial decision in this matter no later than 300 days from the date of service of the Order.