Photo: ANP
Accounting and consulting firm EY, known as Ernst & Young, will pay a $100 million (95 million euros) fine because the company’s accountants cheated in exams. The British Eway also misled the US authorities in investigating the case.
The fine will be paid to the US Securities and Exchange Commission (SEC). According to the Securities and Exchange Commission, this is the largest fine ever imposed on an accounting firm in the United States. EY has pleaded guilty and says it is taking steps to prevent this from happening in the future. The Securities and Exchange Commission has also appointed independent regulators to monitor Ernst & Young’s affairs.
The Securities and Exchange Commission found that 49 accountants at EY had access to answers to an important ethical exam. Hundreds of accountants also cheated in exams in other ways. Meanwhile, EY was aware of the exam cheating after employee advice and an internal investigation, but it was not disclosed to the Securities and Exchange Commission.
The SEC says there was a breach of trust. “It is simply unbelievable that the professionals responsible for detecting fraud by customers deceived themselves in the ethics test,” the regulator said. “It is also shocking that EY obstructed our investigation of this misconduct.”
