Difference between revisions of "Accounting fraud"

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*'''[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 [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.
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 [https://www.sec.gov/litigation/admin/2016/34-78872.pdf 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 [https://www.sec.gov/litigation/admin/2016/34-78873.pdf 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'''==