SEC fines EY with $100 Million, Check out Details!!

EY, one of the biggest accounting companies in the world, has been fined with $100 million. Federal officials have found that 49 of its staff members had cheated on ethics examinations. 

The Securities and Exchange Commission (SEC) claim that the company’s auditors had cheated to pass crucial tests for Certified Public Accountant credentials since 2012. EY had internal reports about the cheating still it did not disclose the wrongdoings.

Employees interviewed during the SEC investigation accepted that they knew cheating was a violation of the code of conduct. They still did it due to work commitments or inability to pass training exams despite multiple attempts. Gurbir S. Grewal – director of the SEC’s Enforcement Division, said in a release, “It’s simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams of all things.” 

This fine is the largest penalty ever imposed by the SEC on any audit firm. EY also has to audit itself and report its findings to the SEC. It must submit an evaluation of its ethics and integrity training. This will be reviewed by unbiased specialists. The incident is a massive embarrassment on EY’s repute, for it claims to have ethics as a pillar stone.