SEC Accountant Warns Firm Leaders Not to Put Profits Over Audits

Recent ethics failures such as exam cheating scandals and sharing of confidential details to help pitch tax avoidance strategies are signs of “unhealthy” audit firm cultures that put investors at risk, the SEC’s top accountant said Wednesday.

Accounting firm leaders should take a closer look at how they support thorough audits and whether they prioritize auditors’ role as watchdogs over firm profits, Paul Munter, chief accountant at the Securities and Exchange Commission, said in a statement.

“Sweeping mistakes and bad behavior under the rug, treating violations of law as isolated incidents or the cost of doing business, not holding ...