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Auditor Prager Metis sued by SEC over auditor independence rules

Image of some tax forms.
Photo: Scott Olson/Getty Images

SEC sues accounting firm Prager Metis for alleged auditor independence violations related to a template it used when signing on clients.

The securities watchdog said in its complaint that between December 2017 and October 2020, Prager Metis improperly added indemnification provisions to engagement letters to clients for more than 200 audits and other work, which prevented the firm from being the independent gatekeeper it is supposed to be under law.

The SEC alleges that