$100 Million PENALTY Ordered By Feds
(RightWing.org) – The “Big Four” is a nickname that applies to the world’s four largest professional accounting firms based on their annual revenue generation. They provide audit services to the majority of public and private companies globally. The US Securities and Exchange Commission (SEC) recently imposed a $100-million penalty on one of those mammoth organizations.
On Thursday, June 28, the SEC issued a press release announcing the unprecedented penalty against Ernst & Young LLP (EY), the largest of its kind ever imposed against an accounting firm.
You can’t make this stuff up!
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 Firmhttps://t.co/NxfjGSk9wd pic.twitter.com/Bpv8UQ4mJ9
— Wolf of My Street🏡 (@Ryan__Rigg) June 28, 2022
The SEC had initiated cease and desist proceedings against EY after finding that 49 of its auditors “sent and/or received answer keys” for the ethics portion of the required exam to obtain their Certified Public Accountant licenses from 2017 to 2021. Additionally, hundreds of others cheated on mandatory continuing education courses. The SEC also accused company officials of misleading investigators looking into the accusations.
EY admitted to the underlying facts and agreed to pay the unprecedented penalty to avoid further action by the SEC. The company also agreed to “undertake extensive remedial measures” to correct its ethical issues.
The SEC’s investigation into EY is ongoing with the assistance of Public Company Accounting Oversight Board officials, a nonprofit corporation that oversees the audits of public companies. The SEC approves the board’s rules and standards for compliance with federal securities laws.
What do you think about a company whose job entails identifying irregularities getting caught cheating on ethics exams?
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