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(US SEC)   Don't cheat on tests. But if you do, don't cheat on ethics tests. But if you do, don't have hundreds of Ernst & Young accountants cheat on their ethics tests, and then have management lie to the SEC about it, resulting in a $100 million fine   (sec.gov) divider line
    More: Asinine, U.S. Securities and Exchange Commission, Public Company Accounting Oversight Board, Ethics, Accountant, SEC's Enforcement Division, Certified Public Accountant, firm's ethical issues, SEC's charges  
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636 clicks; posted to Business » on 28 Jun 2022 at 11:20 AM (5 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



24 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-06-28 11:12:28 AM  
$100million...that's an expensive marketing campaign for EY to let companies know that they are "ethically flexible." They may get a few takers, though. Audit reports from a CPA are often taken as gospel by regulators, vendors and clients. There are certainly companies out there who would welcome the opportunity to get chummy with their auditors who might be encouraged to overlook certain deficiencies (when prompted with a wink & a nudge, and maybe a free trip to a "trade show" in Maui).
 
2022-06-28 11:21:57 AM  
Punishable with a fine = legal for a price
 
2022-06-28 11:25:17 AM  
Just finished The Smartest Guys in the Room and it's nice to know things haven't changed.
 
2022-06-28 11:34:39 AM  
How difficult can an "ethics exam" be that it's even worth the effort of cheating?

That sounds more like something done just to flaunt your disregard for the rules.
 
2022-06-28 11:34:44 AM  
yeah when you cheat the ethics test but are still allowed to do the work that that test is a prerequisite for....
chit be all fooked up like that, when in real deal life such behavior should result in a life time ban form that particular market segment.


When you so blow the situation of trust in so willful a way, that is the ultimate fail of the test of trust, and there are far too many of us waiting to get an opportunity, i cannot grant 2nd chances to anyone. Too many waiting to get their first, so fook off for ever if you blow it like that, you can work the fry basket under supervision from no on.
And if the line for first chances ever empties, you can get a 2nd chance then.
 
2022-06-28 11:39:09 AM  
This comes on the heels of the Wirecard scandal. In a sane world, EY would be in existential danger; but in a sane world, EY's disappearance wouldn't leave us with just three major audit firms worldwide.

But here in the actual world, EY is in talks of separating its audit and consultancy businesses and, if reports are accurate, giving its partners stock valued at $8 million per partner.
 
2022-06-28 11:44:06 AM  

OccamsWhiskers: How difficult can an "ethics exam" be that it's even worth the effort of cheating?

That sounds more like something done just to flaunt your disregard for the rules.


I have some friends who went into finance, and there are a lot of standards relating to fiduciary duty that they have to memorize for the CFA exam. I assume something similar exists for accounting.
 
2022-06-28 11:49:17 AM  
C'moooooon Big Three!
 
2022-06-28 11:52:10 AM  
Well that's the epitome of epitome. :-/
 
2022-06-28 11:53:04 AM  

Arkanaut: OccamsWhiskers: How difficult can an "ethics exam" be that it's even worth the effort of cheating?

That sounds more like something done just to flaunt your disregard for the rules.

I have some friends who went into finance, and there are a lot of standards relating to fiduciary duty that they have to memorize for the CFA exam. I assume something similar exists for accounting.


Yeah, this is an area where I'd think the devil is in the details. "Don't overlook fraud" is the low-hanging fruit, but there must be issues around identifying and resolving conflicts of interest, requisite levels of due diligence, how to deal with whistleblowers, how to elevate issues you've identified, dealing with uncooperative clients, Sarbanes-Oxley and PCAOB compliance, etc. etc.
 
2022-06-28 12:59:24 PM  
Reminds me of the time an entire class worth of students were caught cheating on an exam - all sections of a MAJOR class.

It was at UMD in the mid-2000s, IIRC - a HUGE deal at the time, leading the school to revamp its honor code (and all-but requiring*, in defiance of all things sensible, that students hand-write "I affirm on my honor that I have not given or received any unauthorized assistance on this assignment/exam").

The class was "Business Ethics", and it was indeed straight out of the plot of Billy Goddamned Madison.

// IIRC, the idiot prof had a habit of posting the answer key online at the START of the exam, so people just had their friends text them the answers - also led to a "no electronic devices (apart from calculators, in Math classes) on your desk during exams" rule.
* it was worded as a "non-requirement requirement". Basically, profs couldn't DEMAND it, but most did anyway; and when I showed them that they couldn't demand it (I preferred not to hand-write some bullshiat that goes without saying just so that they can feel better about addressing cheaters) most stopped caring.
 
2022-06-28 1:07:05 PM  

King Something: Punishable with a fine = legal for a price = indulgences


Tale as old as time.
 
2022-06-28 1:09:26 PM  
I have to take ethics compliance courses every year. They are a joke. Questions are: Sally needs money for rent, should she take it from the cash register?
 
2022-06-28 1:17:15 PM  
Fark user imageView Full Size
 
2022-06-28 1:41:36 PM  
I think fines  laid down against businesses need to be a on a sliding scale based on the size and finances of said business.   That way the fines will always be big enough to actually hurt enough to encourage change but not necessarily kill the business.
 
2022-06-28 2:13:43 PM  

grimlock1972: I think fines  laid down against businesses need to be a on a sliding scale based on the size and finances of said business.   That way the fines will always be big enough to actually hurt enough to encourage change but not necessarily kill the business.


Fines for big companies should not be defined in absolute dollar terms, but as a percentage of their average earnings for the last 5 years.
 
2022-06-28 2:16:08 PM  

Dr Dreidel: Reminds me of the time an entire class worth of students were caught cheating on an exam - all sections of a MAJOR class.

It was at UMD in the mid-2000s, IIRC - a HUGE deal at the time, leading the school to revamp its honor code (and all-but requiring*, in defiance of all things sensible, that students hand-write "I affirm on my honor that I have not given or received any unauthorized assistance on this assignment/exam").

The class was "Business Ethics", and it was indeed straight out of the plot of Billy Goddamned Madison.

// IIRC, the idiot prof had a habit of posting the answer key online at the START of the exam, so people just had their friends text them the answers - also led to a "no electronic devices (apart from calculators, in Math classes) on your desk during exams" rule.
* it was worded as a "non-requirement requirement". Basically, profs couldn't DEMAND it, but most did anyway; and when I showed them that they couldn't demand it (I preferred not to hand-write some bullshiat that goes without saying just so that they can feel better about addressing cheaters) most stopped caring.


/NSCSB
 
2022-06-28 2:54:31 PM  
If you're not cheating, then you're only cheating yourself.
 
2022-06-28 3:23:44 PM  
So they just had to pay the fine?  No other consequences?  It's essentially a fee then.
 
2022-06-28 3:28:53 PM  
It's not cheating if you pass because you know how to answer when asked.

I remember a bit from Voltaire about how to find an honest man. Have them all wear baggy clothes, let them pass through a room with many treasures, then make them dance. Look for the ones that move freely and don't clink.
 
2022-06-28 4:16:25 PM  

pacified: I have to take ethics compliance courses every year. They are a joke. Questions are: Sally needs money for rent, should she take it from the cash register?


I call ours the annual "don't do crimes" training.
 
2022-06-28 6:14:33 PM  
Is cheating on an ethics exam IRONIC tag worthy?
 
2022-06-28 8:03:46 PM  
My whole company, regardless of job title, are required to take quarterly ethics courses because too many people were cheating on the yearly CPA exams.

These jokers were cheating on punishment for cheating. Which means even more ethics courses and possibly having to take the exams in independent test centers.

I can't stress how much this is going to suck. I expect people will be fired over this.
 
2022-06-28 9:44:17 PM  
E&Y is as corrupt an organization as there is.
/NMC out front should have told you
//if you made it past Luckin further out front
///and you would have to made it past Wirecard first
 
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