Different accounting firm, but same issue. Do they not read what’s online? Following the KPMG cheating scandal, the SEC checked with other accounting firms. The question was straightforward — Any cheating going on in your shop? EY responded there had been incidents reported in the past but “nothing to see here.” Turns out that cheating had been reported and management knew but no action was taken. There was a whistleblower as well. That’s how the SEC got in on the action.
The best part is that the EY employees were cheating on the ethics exams they must take for their CPA license renewals. Cheating on an ethics exam? Hmmmm.
EY must also have two external compliance reviews. One will be for determining whether EY is promoting ethics and integrity. The other will find out why EY did not make the disclosures when asked by the SEC as part of its investigation of cheating amongst accountants.
History repeats. If you cheat, you get caught. If you get caught, big fines and fees result. How many more times and firms must we go through before this simple principle sinks in? Just study for your exams.
Dave Michaels, “EY to Pay $100 Million Fine in Ethics-Cheating Scandal,” Wall Street Journal, June 29, 2022, p. A1.