SEC Sanctions EY for Personal Relationships with Two Audit Clients

September 20, 2016 RECENT DEVELOPMENTS

These two matters are a bit mind-boggling in terms of their longevity and the number and stature of the folks who knew about them (everyone except Ernst & Young's Independence Office, unfortunately).  A few lessons in the SEC's orders: (1) Don't ignore red flags, and (2) Appearance MATTERS (it's in the profession's rules and the SEC regs).  These were obvious issues that should've been handled swiftly.  Another unfortunate black eye for the profession.