ADMINISTRATIVE PROCEEDING
File No. 3-21710

September 25, 2023 – The Securities and Exchange Commission today instituted a settled administrative proceeding against formerly certified public accountant David C. Powell, a resident of Atlanta, Georgia, for misleading his employer about the status of his CPA license and falsely representing to his clients that audits he performed were conducted in accordance with auditing standards generally accepted in the United States of America (“GAAS”).

According to the SEC’s order, between 2005 and 2020, Powell, as an employee in the Atlanta office of a public accounting firm, was required to hold a CPA license in the state of Georgia.  The order finds that Powell annually represented to his firm that he did hold a Georgia CPA license, but contrary to these representations, he was never actively licensed in Georgia and on at least one occasion provided a falsified license to his firm.  The order further finds that Powell conducted audits that were not authorized by the accounting firm for at least five private companies and represented the audits were performed in accordance with GAAS.  The order finds, however, that for these unauthorized audits, Powell failed to comply with GAAS requirements by failing to obtain annual engagement letters, prepare audit documentation, and ensure proper review sign-off on workpapers and other final reports. 

Without admitting or denying the findings, Powell consented to the SEC’s order finding that he lacks character and integrity and engaged in improper and unethical professional conduct within the meaning of Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e) of the SEC’s Rules of Practice.  Powell agreed to be suspended from appearing or practicing before the SEC as an accountant.  The SEC’s order does not provide Powell an express right to apply for reinstatement.

The SEC’s ongoing investigation is being conducted by enforcement staff in the Atlanta Regional Office, including Melissa Mitchell and Krysta Cannon, and supervised by Thomas Bosch and Justin Jeffries.