It's the Coverup. CFO.com reports that the PCAOB has taken its first action against a CPA firm since the PCAOB was created in 2003.

At issue was a violation of the auditor independence rules of the Sarbanes-Oxley Act, and as part of the inspection, the regulator's Division of Registration and Inspections directed a request for information and documents to the firm. The board found that in responding to the request, Edward Morris and two partners — Alan J. Goldberger and William A. Postelnik — were aware that the firm had prepared the financial statements of two of its public company audit clients, actions that run contrary to the auditor independence requirements of Sarbanes-Oxley.