Posted on 06/28/2022 3:29:42 PM PDT by SeekAndFind
Ernst & Young cheated on the ethics section of the Certified Public Accountant exam and withheld evidence of the behavior from regulators, according to the Securities and Exchange Commission.
The SEC has fined EY $100 million — the largest penalty ever for an accounting firm — the agency announced on Tuesday. Beyond breaking accounting rules, the company "hindered" the agency's probe of the misconduct by withholding information from the SEC, the regulator stated.
"It's simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams," Gurbir Grewal, director of the SEC's enforcement division, said in a statement. "It's equally shocking that Ernst & Young hindered our investigation of this misconduct."
After being told of the potentially untruthful conduct, EY "indicated that the firm did not have any current issues with cheating," and never informed the agency when an internal investigation found evidence of it, according to the SEC.
(Excerpt) Read more at cbsnews.com ...
Nearly 50 EY audit employees shared answers on the ethics part of the CPA exam between 2017 and 2021, with hundreds more cheating on continuing professional education courses, the SEC said.
A significant number of EY professionals who did not cheat but knew their colleagues did, and facilitated the cheating, also violated the firm’s code of conduct by failing to report it.
EY is one of the world’s big 4 accouting, consulting and auditing firms. The other three are Deloitte, PWC and KPMG.
Total losers. I’m glad none of the Big 8 (later Big 6, etc) were interested in hiring me in my late 20s after serving in the military. Screw them.
How could anyone cheat on an ethics exam?
I was employed at MCI in December of 1981. I continued to be employed through the purchase by WorldCom and securities fraud by Bernie Ebbers, subsequent bankruptcy and restructuring, and purchase by Verizon.
We had ongoing ethics training company wide after the bankruptcy. I cannot see how a person could cheat on ethics training. Do they really mean employees lied because that might be possible.
Wow, this is very bad for the profession. CPA’s most valuable asset is credibility and E&Y just impaired that big time.
Big 4 about to become the Big 3?
If the fine $$ went back to the customers I might care about this, but since it will go into the governments slush fund...shrug!
Every bit of this goes to leftist NGOs. The timing with midterms is no accident.
I hear you. The big CPA firms are age discriminators. I went back to school for a Masters degree in tax after working for the IRS for 14 years. I was 43 when I graduated and none of the big firms would hire me, despite my good looks and charming personality. I found my niche but it wasn’t easy, started my own firm and did OK for a former government employee. Most of the CPA’s from the big firms thought they were better than everyone else.
On one hand, good for them. On the other hand, the current US Gov’t is the most unethical organization this side of Ukraine. Must be some political purpose to this.
Are the questions on an ethics exam that tough? I don’t know - just asking.
Ahhhh I didn’t think of that and you could very well be right!
If you were around here during the Kenyon faggot imposter years, you would have read plenty about Eric the red and his ‘wing man’ DOJ criminality. Threatening companies with huge fines, settling pre-trial, rewarding CEO’s who capitulated and funneling hundreds of millions through leftist NGOs who went after banks or any other RAT target. Of course some portion of the millions also went into DNC circulation. The weaponization of gov agencies was Kenyon MO.
A dark part of me wants a CPA who would cheat on the ethics portion to do my taxes.
Dealing with the IRS and all…
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