Difference between revisions of "Accounting fraud"

115 bytes added ,  14:51, 4 October 2021
Line 98: Line 98:
*'''[https://www.sec.gov/news/pressrelease/2016-187.html?_ga=1.86134815.641111032.1470880180 SEC v. E&Y]'''
*'''[https://www.sec.gov/news/pressrelease/2016-187.html?_ga=1.86134815.641111032.1470880180 SEC v. E&Y]'''


On September 19, 2016, the SEC announced that public accounting firm Ernst & Young had agreed to pay '''$9.3 million''' to settle charges that two of the firm’s audit partners had “inappropriately close personal relationships” with their clients and thereby violated independence rules designed to ensure that firms maintain their objectivity and impartiality during audits. In one of the SEC’s orders, an EY audit partner was having a romantic relationship with a client’s Chief Accounting Officer. The main EY audit partner on the account noticed signs of this romantic relationship but failed to perform a reasonable inquiry. In the SEC’s second order, an audit partner was accused of excessive socializing with a client’s Chief Financial Officer. This socializing included attending sporting events, taking vacations, and incurring other significant entertainment expenses that did not serve a proper a business purpose.
On September 19, 2016, the SEC announced that public accounting firm Ernst & Young had agreed to pay '''$9.3 million''' to settle charges that two of the firm’s audit partners had “inappropriately close personal relationships” with their clients and thereby [https://www.zuckermanlaw.com/rewards-and-bounties-for-whistleblowers/auditor-independence-whistleblower-lawyers/ violated independence rules] designed to ensure that firms maintain their objectivity and impartiality during audits. In one of the SEC’s orders, an EY audit partner was having a romantic relationship with a client’s Chief Accounting Officer. The main EY audit partner on the account noticed signs of this romantic relationship but failed to perform a reasonable inquiry. In the SEC’s second order, an audit partner was accused of excessive socializing with a client’s Chief Financial Officer. This socializing included attending sporting events, taking vacations, and incurring other significant entertainment expenses that did not serve a proper a business purpose.


=='''Improper Asset Valuations'''==
=='''Improper Asset Valuations'''==