Violation by Mendoza, Berger & Company,

759

Public Company Accounting Oversight Board barred Henry Mendoza from being associated person of registered public accounting firm.

The Board found that Mendoza, the managing partner of the formerly registered firm Mendoza, Berger & Company, LLP, failed to cooperate in a Board inspection and in a Board investigation in violation of PCAOB rules. The Board also found that Mendoza violated PCAOB auditing standards related to audit documentation. According to the Board’s order, when Mendoza learned of an upcoming Board inspection, he announced in a firm-wide meeting that the work papers for the relevant audits needed to be “cleaned up” prior to the inspectors’ arrival. He instructed staff members to fill out audit programs that had not been completed at the time of the audit and directed changes to work papers, including backdating them to the time of the audit. Mendoza did not advise Board inspectors of the changes to the work papers and did not comply with standards for documenting the changes.

Later, after the Board commenced an informal inquiry, Mendoza directed additional modifications to work papers, including backdating them. These documents were provided to the Board’s Division of Enforcement and Investigations during the informal inquiry and then again after the Board commenced a formal investigation of the firm. Again, Mendoza did not inform the Board’s staff of the changes or comply with standards for documenting the changes.