SEC Administrative Order Flags Lobbying as an Auditor Independence Issue

Name: Cahill
Price range: $$$

July 18, 2014

On July 14, 2014, the Securities and Exchange Commission (“SEC”) commenced administrative proceedings charging Ernst & Young (“E&Y”) with auditor independence violations after finding that one of E&Y’s subsidiaries provided improper lobbying services to two of its SEC-registrant audit clients. To settle the charges, E&Y agreed to pay over $4 million in civil penalties without admitting or denying any wrongdoing.

CGR Memo - SEC Administrative Order Flags Lobbying as an Auditor Independence Issue