News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Accountancy

EY to pay $100m settlement fine over audit employees cheating CPA exams

EY was tipped off about staff cheating but instead of quickly disclosing this to the SEC, it began an internal probe, hoping to learn more and come up with a plan to address any problems

The Securities and Exchange Commission said the penalty stemmed partly from EY's failure to report the scandal to regulators who had asked the firm about such misbehaviour
The Securities and Exchange Commission said the penalty stemmed partly from EY's failure to report the scandal to regulators who had asked the firm about such misbehaviour Photo: Simon Dawson/Getty Images

Ernst & Young agreed to pay a record $100m fine and to admit that some of its auditors cheated on required ethics exams in recent years, according to a settlement order released on 28 June.

The Securities and Exchange Commission said the penalty is the largest fine ever imposed on an audit firm, and stemmed partly from EY's failure to report the scandal to regulators who had asked the firm about such misbehaviour.

WSJ Logo