The US Stock Exchange watchdog SEC has fined audit firm Ernst & Young $ 100 million (approximately மில்லியன் 95 million) because many employees cheated during their choices to obtain or retain their accounting license. Regulatory reports state that this is the largest fine ever imposed by the SEC on an auditing firm. KPMG 2019 was fined $ 50 million in a similar case.
The SEC (Securities and Exchange Commission) has indicated that 49 employees of the London Group have submitted or received answers for the Examination Protocol section to become accountants between 2017 and 2021. Others cheated on the tests required to keep their licenses.
“It is simply outrageous that professionals whose profession is to detect fraudulent clients are cheating in ethical exams,” said SEC President Gurbir Grewal.
E&Y told the regulatory authority that it was not aware of the procedures. However, an internal investigation confirmed the fraud allegations and the matter was discussed by the panel’s lawyers and management.
The SEC also recalls that between 2012 and 2015 a similar fraud had already taken place within the company. The matter was then dealt with internally; “But the fraud has not stopped,” the regulator said.
Ernst & Young acknowledges the facts and promises to try to solve problems within the company. This includes discipline and training. The committee should appoint two external advisers, one to review ethics and integrity rules and to look into the transparency issues of the organization.