The multinational professional services collaboration Ernst & Young Global Limited, usually known as EY, has its headquarters in London, England. EY is among the biggest consulting firms networks in the world. Along with Deloitte, KPMG, and Pwc, it is recognized as being one of the Big Four accounting firms.
Globally, Ernst & Young offers services in audit, tax, business risk, technology and security risk, and human capital.
Recently, To resolve complaints from the U.S. Securities and Exchange Commission (SEC) that its auditors had cheated on CPA examinations and that it had lied to the agency’s inspectors, Big Four accounting firm Ernst & Young will pay $100 million.
The London-based auditor pleaded guilty to the allegations and consented to pay the SEC’s biggest penalties ever imposed on an auditor.
Brendan Mullin, head of media relations at EY, stated that the company “admits the conclusions found by the SEC” and added that the firm’s reaction has been “thorough, detailed, and successful.”
According to the SEC, EY also consented to “undertake comprehensive remedial actions to remedy the firm’s ethical concerns.”
The Wall Street watchdog discovered that hundreds of EY employees cheated to pass the CPA ethics-related CPE requirements, while 49 EY employees “obtained or disseminated” answers to CPA licensure tests. “This lawsuit includes betrayals of trust by gatekeepers who were entrusted with auditing many of the publicly traded firms in our country. It is unacceptable that the very specialists tasked with identifying client wrongdoing also failed on ethics tests “The SEC’s enforcement director, Gurbir Grewal, stated in a statement.
The fact that Ernst & Young impeded our inquiry into this misbehavior is also alarming, continued Grewal.
According to the SEC, EY claimed to have no concerns with cheating while in reality, a staff member had alerted the company to possible cheating on a CPA ethics test. Furthermore, even though an internal EY inquiry found there had been wrongdoing and after its top attorneys had spoken with the firm’s senior management, EY acknowledged it had not corrected its application. The Public Company Accounting Oversight Board (PCAOB) provision requiring EY to uphold integrity when rendering a professional service is also found to have been broken, according to the SEC’s ruling.