PricewaterhouseCoopers to pay $1 million to settle Merrill Lynch’s audit allegations

Bank of America Merrill Lynch had complained that the audit and accountancy firm had failed to do its due diligence.

The Public Company Accounting Oversight Board (PCAOB) has disclosed PricewaterhouseCoopers LLP is will settle a civil complaint alleging that it failed to do its due diligence during the compliance audit of Merrill Lynch with the payment of $1 million.

“We are pleased to have resolved the matter,” said PwC in a statement.

The PCAOB’s penalty against the accounting firm comes a little over a year after the SEC ordered Bank of America’s Merrill Lynch to pay a fine of $415 million to settle charges that it had put its brokerage clients’ cash at risk in violation of customer protection rules.

SEC’s ex rules require brokerage firms to hold customer money in segregated accounts in order to shield them from creditor claims against the bank.

Its rules also requires brokerage firms to hire outside auditors to conduct routine audits to ensure the compliance of its rules.

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