IN THE MATTER OF STORY & COMPANY, P.C. AND BRIAN L. STORY, CPA
The SEC charged Story & Company, P.C. and its owner Brian L. Story, CPA, with willfully violating Section 102(a) of the Sarbanes-Oxley Act by issuing an unregistered audit report for a public company in 2004, leading to administrative proceedings seeking their potential censure or permanent bar from practicing before the Commission.
The U.S. SEC alleged that Story & Company, P.C. and Brian L. Story, CPA, violated Section 102(a) of the Sarbanes-Oxley Act by preparing and issuing an audit report for a public company in 2004 without registering with the Public Company Accounting Oversight Board (PCAOB), a requirement effective since October 22, 2003. The SEC characterized this conduct as willful and asserted that it rendered both the firm and individual unqualified to represent others before the Commission. Administrative proceedings were initiated under Section 4C of the Securities Exchange Act and Rule 102(e) to determine whether they should be censured or permanently barred, with no monetary penalties sought.
The U.S. Securities and Exchange Commission (SEC) initiated administrative proceedings against Story & Company, P.C. and its owner, Brian L. Story, CPA, for violating Section 102(a) of the Sarbanes-Oxley Act of 2002. The violation stemmed from the firm’s preparation and issuance of an audit report for a public company in 2004, despite not being registered with the Public Company Accounting Oversight Board (PCAOB), a legal requirement that took effect on October 22, 2003. The SEC alleged that this conduct was willful and rendered both the firm and individual unqualified to practice before the Commission. Proceedings were brought under Section 4C of the Securities Exchange Act and Rule 102(e) of the SEC’s Rules of Practice, seeking potential censure or permanent denial of their privilege to appear or practice before the Commission. No monetary fines or specific financial damages were cited, as the focus was solely on professional licensing and regulatory compliance. A hearing before an administrative law judge was scheduled to determine the truth of the allegations and appropriate sanctions. The judge was directed to issue an initial decision no later than 300 days after service of the Order, providing Story & Company and Story an opportunity to respond and contest the charges.
Extracted insights
- person Brian L. Story
- organization Public Company Accounting Oversight Board
- organization Securities and Exchange Commission
- organization Story & Company, P.C.
- agency United States Securities And Exchange Commission
- United States Securities and Exchange Commission announced issuance of an Order Instituting Administrative Proceedings
- Order alleges Story & Company prepared and issued an audit report
- Order alleges Story participated in the preparation and issuance of an audit report
- Sarbanes-Oxley Act prohibits accounting firms not registered with the Board from preparing or issuing audit reports
- Order institutes proceedings against Story & Company and Story
- Order directs Administrative Law Judge to issue an initial decision
U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. SECURITIES EXCHANGE ACT OF 1934 Release No. 56435 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2715 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12796 IN THE MATTER OF STORY & COMPANY, P.C. AND BRIAN L. STORY, 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 Story & Company (Story & Company) and Brian L. Story (Story). The Order alleges that Story & Company prepared and issued and Story 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, Story & Company and Story lacked the requisite qualifications to represent others and that Story & Company willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Story & Company and Story 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 Story & Company, 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 Story & Company and Story 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. 56435 / September 13, 2007 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2715 / September 13, 2007 ADMINISTRATIVE PROCEEDING File No. 3-12796 IN THE MATTER OF STORY & COMPANY, P.C. AND BRIAN L. STORY, 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 Story & Company (Story & Company) and Brian L. Story (Story). The Order alleges that Story & Company prepared and issued and Story 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, Story & Company and Story lacked the requisite qualifications to represent others and that Story & Company willfully violated Section 102(a) of the Sarbanes-Oxley Act. Based on the above, the Order institutes proceedings against Story & Company and Story 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 Story & Company, 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 Story & Company and Story 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.