Ernst & Young hit with $100 million fine over cheating on ethics tests
Source: Washington Post
Hundreds of employees at the accounting giant shared answers to exams required to maintain their licenses
By Tory Newmyer
Hundreds of auditors at accounting giant Ernst & Young cheated on ethics tests they were required to take to get or maintain their professional licenses, and the company withheld evidence of the misconduct from federal authorities investigating the matter, according to the Securities and Exchange Commission.
In response, the SEC is imposing a $100 million fine on the company, the largest ever on an audit firm, the agency announced Tuesday.
This action involves breaches of trust by gatekeepers within the gatekeeper entrusted to audit many of our nations public companies, Gurbir Grewal, SEC enforcement director, said in a statement. Its simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams of all things.
In a statement, Ernst & Young admitted to the SECs charges and said it is complying with the agencys penalty.
Ernst & Young's logo is seen in Zurich. (Arnd Wiegmann/Reuters)
Read more: https://www.washingtonpost.com/business/2022/06/28/ernst-young-cheating-sec-fine/
IronLionZion
(45,543 posts)howardmappel
(80 posts)Persons involved should also lose their licenses, etc.
TexasTowelie
(112,465 posts)It's an obvious violation of ethical standards by the employees involved and each one should be fired.
BlueSky3
(515 posts)that's a shocker. Thanks for posting.
RAB910
(3,514 posts)well if you are going to do something bad, might as well go big
catrose
(5,073 posts)And NOBODY in the company thought this was weird, not to say wrong?
dchill
(38,547 posts)Lonestarblue
(10,094 posts)I dont know that it has gotten worseI still remember Enronbut I think that overall lawlessness got a lot worse with Trump in office. It was as if his followers and perhaps others knew that he was and is a criminal and, more importantly, always gets away with his crimes.So why should t they?
I hope his impunity is about to come to an end.
PoliticAverse
(26,366 posts)TheRickles
(2,086 posts)okaawhatever
(9,462 posts)an honorable mention.
PoliticAverse
(26,366 posts)harumph
(1,915 posts)twodogsbarking
(9,832 posts)I need to know more.
Midnight Writer
(21,812 posts)Supreme Court would probably declare the SEC unconstitutional. I expect them to do that in due course anyway.
3825-87867
(855 posts)and what about SEC fines and bank fines and especially when the gov fines corps. Where does the money go? To the general fund so it can be divied up again for business?
Just curious.
jaxexpat
(6,854 posts)"Shut up! You stupid bean counter. I'm tryin' to think,"" replied Mr. Young.
Wonder Why
(3,263 posts)They should have fined the top people involved in allowing employees to cheat and failing to report it to the government. And if those top people committed fraud by doing so, those individuals should be charged with crimes.
Now when companies get "convicted" or fined for wrongdoing, the executives walk off scot-free. Sure, they may receive smaller bonuses from the partnership but if they were individually fined, they would have to pay more in taxes when the company "awards" them bigger bonuses from the higher profits and the individuals would more likely become bigger targets of the IRS.
Imagine a personal fine of $10M. The hit to your greed would be a welcome pleasure (for the rest of us, at least) and a personal reminder of what ethics is all about.
Joinfortmill
(14,468 posts)drmeow
(5,025 posts)Take 1/2 of their assets.
Yavin4
(35,446 posts)Immediate fail.
maxsolomon
(33,403 posts)They'd never cheat there.