Top accounting firm fined $100 million after employees cheated on CPA exams
Ernst & Young has been slapped with a record $100 million fine from the US government after regulators discovered that the company knew some of its auditors were cheating on exams for several years and did nothing to stop it.
The Securities and Exchange Commission said Tuesday that a "significant number" of the accounting firm's auditors cheated on the ethics portion of the Certified Public Accountant test and other courses needed to maintain the licenses.
Perhaps more stunningly, the SEC said that Ernst & Young "made a submission" that it didn't have "current issues with cheating when, in fact, the firm had been informed of potential cheating on a CPA ethics exam."
The $100 million fine is its largest ever against an auditing firm.