EY Cheating a ‘Wake-Up Call’ as SEC Targets Market Gatekeepers

Ernst & Young LLP’s $100 million fine for unchecked cheating on ethics tests and other training, coupled with a string of similar cases at other firms, threatens to undermine a profession that sells itself as a trusted protector of the public’s interest, from taxpayers to shareholders.

The latest news means affiliates of three of the Big Four firms have faced discipline after staff was found cheating on professional training programs since 2019. And EY’s record penalty effectively resets the bar for audit enforcement under Gary Gensler’s leadership of the Securities and Exchange Commission, which has repeatedly warned firms about risks ...