By John Carney, Patrick Campbell and Christina Gotsis (January 11, 2019, 12:46 PM EST) -- On Dec. 21, 2018, the U.S. Securities and Exchange Commission charged national audit firm Crowe LLP and two of its partners for alleged significant failures in their 2013 audit of Corporate Resource Services Inc., which went bankrupt in 2015 after the discovery of approximately $100 million in unpaid federal payroll tax liabilities.[1] The SEC alleged that Crowe's audit team identified pervasive fraud risks yet failed, among other things, to "[o]btain sufficient appropriate audit evidence to respond to these fraud risks, support recognition of revenue, and otherwise support the audit opinion."[2] Crowe agreed to pay a penalty of $1.5 million, be censured and retain an independent compliance consultant to review its audit policies and procedures.[3] The partners agreed to pay penalties and be suspended from appearing and practicing before the SEC as accountants (with the ability to reapply).[4]...