ABSTRACT
Marcum LLP has grown organically and through acquisitions/mergers with other accounting firms. It experienced exponential growth from 2021 to 2023, benefiting from investors’ increased interest in special purpose acquisition companies (SPACs). The rapid growth of Marcum LLP coupled with preexisting deficiencies in the firm’s quality control procedures resulted in numerous violations of auditing standards and PCAOB professional standards. This case study is designed for use in the undergraduate or graduate audit classroom to examine quality controls at accounting firms and related ethical issues. After completing this case study, students will be able to apply auditing standards to identify deficiencies in the firm’s system of quality control as required by the AICPA quality framework and assess the consequences of the failure to design and maintain such a system. They will also be able to evaluate the responsibility of individuals within the organization for the effectiveness of a firm’s quality control.
JEL Classifications: M42.