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Ernst & Young’s fraudulent scandal: “the biggest fine ever imposed” on audit firms

US Securities and Exchange Commission (SEC) Announced price We donated $ 100 million to an audit firm for Ernst & Young Tuesday. “The biggest penalty the SEC has ever imposed on audit firms.”

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According to the release, the auditors of Ernst & Young, one of the “Big Four” accounting firms, tricked a professional education course to maintain a certified accountant’s license. Over the years, employees have also cheated on the ethical part of the Certified Accountant Exam. The company admits these charges.

In addition, when the company became aware of the Certified Accountant Examination fraud, it made a false submission to the SEC executive department, stating that “there was no current problem with fraud.” After internal investigations revealed the scale of these issues, senior lawyers and senior management at Ernst & Young did not revise the information provided to the SEC.

“It’s just ridiculous for an expert responsible for catching client fraud to cheat in an ethical test of everything,” said Gurbir S. Grewal, SEC Executive Director. “And it’s equally shocking that Ernst & Young interfered with the investigation of this illegal activity.”

In addition to a $ 100 million fine, Ernst & Young needs to “take extensive corrective action to resolve the company’s ethical issues.”

Other cases of recent scams

In 2019, KPMG was fined $ 50 million for “using stolen information to modify some of the accounting firm’s previous audit work” and was fooled by training exams, like Ernst & Young. It turned out that. Reuters.. At that time, it was one of the SEC’s biggest fines for audit firms.

March, The Wall Street Journal The SEC reported that it is conducting a “thorough investigation of conflicts of interest” at the largest accounting firms in the country, including the four major accounting firms Deloitte & Toush, Ernst & Young, KPMG and PricewaterhouseCoopers.

these are 4 companies We audit 66% of all public companies and receive large non-audit fees from the companies that hired them to conduct independent audits, indicating a potential conflict of interest.

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https://www./2022/6/29/23187335/ernst-young-cheating-scandal-the-largest-fine-ever-imposed-against-audit-company Ernst & Young’s fraudulent scandal: “the biggest fine ever imposed” on audit firms

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