Accounting apocalypse: FTX auditor Prager Metis sued by the SEC
Prager Metis, one of the auditors that took care of the books for FTX — and had office space in the metaverse — has had a complaint filed against it for failing to follow rules for certified public accountants. These include getting indemnification clauses so that it wasn’t legally bound to the audits, attestations, and reviews it was providing. During this time, the accounting firm took in millions of dollars from dozens of different engagements that were improperly conducted, and while this spells bad news for Prager Metis, it could imply that a far bigger shoe has yet to drop for the accounting industry as a whole. The SEC is moving against auditors This action against Prager Metis isn’t the first time the government regulator has taken on an audit or this year. In June, the SEC settled with Marcum LLP over its “control deficiencies” in regard to SPACs (Special Purpose Acquisition Companies). Marcum took on roughly 600 different SPACs as their audit or, with 2...