AuditorRecord

U.S. Securities and Exchange Commission ยท United States

Ernst & Young LLP: fine by U.S. Securities and Exchange Commission

Audit or matter: None (firm conduct, ethics exam cheating)

Decision date28 June 2022
SanctionFine
Amount as stated$100 million
StatusFinal
NetworkEY

What the regulator found

The SEC found that EY audit professionals cheated on the ethics component of CPA licensing exams and on continuing professional education courses, and that EY made a submission to the Enforcement Division saying it had no current cheating issues after being informed of potential cheating. The SEC said EY admitted the facts underlying the charges and agreed to retain two independent consultants and undertake remedial measures. The SEC described the penalty as the largest it had ever imposed against an audit firm.1

Status: Final1

Sources

  1. U.S. Securities and Exchange Commission, Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation (press release 2022-114) (28 June 2022)