BDO to Pay $2 Million Fine for Faulty Healthcare Company Audit

BDO USA P.C. has agreed to pay more than $2 million to settle US audit regulator charges that the firm and two partners ignored red flags when vetting a healthcare company’s projected revenue from insurers and its accounts receivables.

The firm and two partners involved in the fiscal year 2017 audit of AAC Holdings Inc., which filed for bankruptcy in 2020, failed to scrutinize the assumptions baked into a trio of estimates that affected the company’s revenues, according to the settlement order the Public Company Accounting Oversight Board released Tuesday.

BDO said ...