HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Ernst & Young hit with $1...

Tue Jun 28, 2022, 09:33 AM

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 nation’s public companies,” Gurbir Grewal, SEC enforcement director, said in a statement. “It’s 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 SEC’s charges and said it is complying with the agency’s 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/

22 replies, 2666 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 22 replies Author Time Post
Reply Ernst & Young hit with $100 million fine over cheating on ethics tests (Original post)
Omaha Steve Jun 28 OP
IronLionZion Jun 28 #1
howardmappel Jun 28 #2
TexasTowelie Jun 28 #6
BlueSky3 Jun 28 #3
RAB910 Jun 28 #4
catrose Jun 28 #12
dchill Jun 28 #5
Lonestarblue Jun 28 #7
PoliticAverse Jun 28 #8
TheRickles Jun 28 #11
okaawhatever Jun 29 #20
PoliticAverse Jun 30 #22
harumph Jun 28 #9
twodogsbarking Jun 28 #10
Midnight Writer Jun 28 #13
3825-87867 Jun 28 #14
jaxexpat Jun 28 #15
Wonder Why Jun 28 #16
Joinfortmill Jun 28 #17
drmeow Jun 28 #18
Yavin4 Jun 28 #19
maxsolomon Jun 29 #21

Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 09:37 AM

1. Ethics is for losers. Winners don't have time for ethics

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 09:39 AM

2. Lose their licenses, including any supervisors who knew or should have known.

Persons involved should also lose their licenses, etc.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to howardmappel (Reply #2)

Tue Jun 28, 2022, 10:08 AM

6. Exactly.

It's an obvious violation of ethical standards by the employees involved and each one should be fired.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 09:43 AM

3. Wow,

that's a shocker. Thanks for posting.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 09:44 AM

4. WOW! cheating on an ethics test

well if you are going to do something bad, might as well go big

Reply to this post

Back to top Alert abuse Link here Permalink


Response to RAB910 (Reply #4)

Tue Jun 28, 2022, 11:28 AM

12. Cheating on an ethics test by an audit firm

And NOBODY in the company thought this was weird, not to say wrong?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 09:53 AM

5. That really gets to the heart of the matter.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 10:27 AM

7. I'm glad to see fines like this, but too often corporate leaders never get punished.

I don’t know that it has gotten worse—I still remember Enron—but 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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 10:40 AM

8. Nothing quite more ironic than cheating on an ethics exam. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to PoliticAverse (Reply #8)

Tue Jun 28, 2022, 11:13 AM

11. More ironic, and also moronic. :-)

Reply to this post

Back to top Alert abuse Link here Permalink


Response to PoliticAverse (Reply #8)

Wed Jun 29, 2022, 01:56 PM

20. My company had a worker injured at a 3 month injury free celebration. Not as bad, but

an honorable mention.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to okaawhatever (Reply #20)

Thu Jun 30, 2022, 01:08 AM

22. I think that falls under "tempting fate". n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 10:44 AM

9. Say it ain't so! They were Lehman Bros. accountant

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 10:56 AM

10. This isn't adding up to me.

I need to know more.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 12:02 PM

13. Surprised Ernst & Young are complying. I figured they would take it to The Supreme Court.

Supreme Court would probably declare the SEC unconstitutional. I expect them to do that in due course anyway.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 12:19 PM

14. Who gets the fine money?

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 12:21 PM

15. "Well how else can we afford these fines if we don't cheat?" asked Mr. Ernst of Mr. Young.

"Shut up! You stupid bean counter. I'm tryin' to think,"" replied Mr. Young.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 12:43 PM

16. The SEC should NOT have fined the company!

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 12:58 PM

17. Holy shit

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 10:12 PM

18. Still too small

Take 1/2 of their assets.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Tue Jun 28, 2022, 11:20 PM

19. Ethics Exam Test. Question 1: Is it okay to cheat on this exam?

Immediate fail.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Omaha Steve (Original post)

Wed Jun 29, 2022, 02:47 PM

21. The Ethics exam is one thing, but the MORALS exam? Well, that's different.

They'd never cheat there.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread