The US Securities and Exchange Commission has been misled. As a consequence, the supervisory authority decided on the highest penalty to date against an auditing firm.
The US Securities and Exchange Commission has imposed a severe fine on the consulting firm Ernst & Young (EY) for violating the rules in employee reviews.
The company admitted to wrongdoing and accepted a $100 million fine, the SEC said on Tuesday. According to the agency, EY employees cheated for years on certain exams and courses they needed to earn their chartered accountant licenses.
The company also withheld evidence during the investigation and tried to mislead the SEC. As a consequence, the supervisory authority decided on the highest penalty to date against an auditing firm. SEC Director Gurbir S. Grewal described it as “outrageous” that professionals who are responsible for uncovering trickery by clients cheated. EY was remorseful in a statement and said: “Nothing is more important than our integrity and morals”.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
