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EY settles two auditor independence cases with SEC

Tammy Whitehouse | September 19, 2016

EY has agreed to a combined $9.3 million settlement of auditor independence charges with the Securities and Exchange Commission in two separate cases where auditors got a bit too chummy with their public company audit clients.

While the SEC’s auditor independence cases typically involve inappropriate financial relationships, these two cases instead involve inappropriate personal relationships, said Andrew Ceresney, director of the enforcement at the SEC, in a press briefing. EY is paying stiff fines because of the firm’s “failure to take action when confronted with red flags,” he said. 

In a statement, EY says it regrets the issues and is pleased to wrap up the cases. “The individuals at the center of these matters violated multiple EY policies, hid their conduct,...

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