Ernst And Young Fined 100 Million Dollar After Admitting Accountants Cheated On Cpa Exams IG News

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The firm will pay a fine of Rs 790 crore for hundreds of auditors of Ernst & Young (EY), the world’s largest auditing firm, caught cheating on ethical tests. According to the US securities regulator (SEC), hundreds of auditors of the firm continuously cheated from 2017-2021 in exams to retain professional licenses.

The company knew, but did not disclose it during the investigation. Due to this, the regulator has imposed the biggest penalty ever on an auditing firm. Ernst & Young not only misled investigators, but also violated public accounting rules by hiding evidence, the SEC said in its order. Investigations revealed that 49 auditors of the firm had already got the exam keys, which they also shared with others.

The firm admitted that the conduct was wrong.
After the SEC’s investigation, the firm admitted that its conduct was wrong and that nothing was more important than integrity and morality. Sharing of answers by employees is a blatant violation of the code of conduct, which is intolerable. The firm will take strict steps to comply with the ethical norms.

During 2012 to 2015 also copied

  • This is not the first time that the auditors have committed ethical fraud on such a large scale, the regulator said. Earlier, more or less similar copying took place between 2012 and 2015.
  • It has been said in the order that the firm had warned its employees in the past about cheating in the examination, but it has not had any significant effect so far.

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The firm will pay a fine of Rs 790 crore for hundreds of auditors of Ernst & Young (EY), the world’s largest auditing firm, caught cheating on ethical tests. According to the US securities regulator (SEC), hundreds of auditors of the firm continuously cheated from 2017-2021 in exams to retain professional licenses.

The company knew, but did not disclose it during the investigation. Due to this, the regulator has imposed the biggest penalty ever on an auditing firm. Ernst & Young not only misled investigators, but also violated public accounting rules by hiding evidence, the SEC said in its order. Investigations revealed that 49 auditors of the firm had already got the exam keys, which they also shared with others.

The firm admitted that the conduct was wrong.

After the SEC’s investigation, the firm admitted that its conduct was wrong and that nothing was more important than integrity and morality. Sharing of answers by employees is a blatant violation of the code of conduct, which is intolerable. The firm will take strict steps to comply with the ethical norms.

copy during 2012 to 2015 also

  • This is not the first time that the auditors have committed ethical fraud on such a large scale, the regulator said. Earlier, more or less similar copying took place between 2012 and 2015.
  • It has been said in the order that the firm had warned its employees in the past about cheating in the examination, but it has not had any significant effect so far.

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