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EY Pays Biggest Fine Ever Levied by SEC

Thursday Sept 1 2022

Ernst & Young faces a $100 million fine, the biggest ever doled out by the Securities and Exchange Commission against an auditing firm, after an investigation found that hundreds of its auditors cheated on ethics exams from 2017 to 2021, The New York Times reports. The SEC also says EY didn't do enough to combat the cheating.

 
Note to students, how come CPAs at this level had to cheat to pass an ethics exam, did anyone ask?

Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation

Largest Penalty Ever Imposed by SEC Against an Audit Firm

FOR IMMEDIATE RELEASE
2022-114

Washington D.C., June 28, 2022 —

The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from the SEC’s Enforcement Division during the Division’s investigation of the matter. EY admits the facts underlying the SEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedial measures to fix the firm’s ethical issues.

Click here for full article

more details from bloomberg

 

Speaking of auditor incompetence, check out these two blow ups

EY and Wirecard

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One response to “EY Pays Biggest Fine Ever Levied by SEC”

  1. Abraham Trevino Avatar
    Abraham Trevino

    It is pretty ironic that an auditing firm cheated on the CPA exam. What really blows my mind is that it was the ethics section of the exam. It makes me question what connections and influence they possess. How can a firm think that it can get away with hundreds of candidates cheating on the exam, without expecting these sorts of repercussions.

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