{"id":569,"date":"2007-03-26T20:20:18","date_gmt":"2007-03-27T01:20:18","guid":{"rendered":"http:\/\/www.sequence-inc.com\/fraudfiles\/2007\/03\/26\/ernst-young-censured-for-lack-of-independence-in-audits\/"},"modified":"2008-02-03T23:25:59","modified_gmt":"2008-02-04T05:25:59","slug":"ernst-young-censured-for-lack-of-independence-in-audits","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/ernst-young-censured-for-lack-of-independence-in-audits\/","title":{"rendered":"Ernst &#038; Young censured for lack of independence in audits"},"content":{"rendered":"<p>The Securities and Exchange Commission (SEC) censured Ernst &amp; Young LLP for doing work that compromised its indepence with regard to American International Group (AIG) and PNC Financial Services Group. The work included helping AIG develop and market a financial product that was sold to PNC, who was an audit client of E&amp;Y.<\/p>\n<p>PNC improperly accounted for certain transactions, which led to a restatement of income by $155 million. The SEC claims that E&amp;Y didn&#8217;t detect these accounting errors because the firm didn&#8217;t scrutinize transactions, relying instead on information from E&amp;Y partners who worked on the AIG project.\/<\/p>\n<p>E&amp;Y will also pay $1.5 million dollars to settle these charges, but did not admit or deny the charges. This is the second time E&amp;Y has been censured for lack of independence in audits. The first charge was in 2003, when E&amp;Y was receiving money for recommending PeopleSoft software to clients, even though PeopleSoft was an auditing client of E&amp;Y.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission (SEC) censured Ernst &amp; Young LLP for doing work that compromised its indepence with regard to American International Group (AIG) and PNC Financial Services Group. The work included helping AIG develop and market a financial [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[16],"tags":[],"class_list":["post-569","post","type-post","status-publish","format-standard","hentry","category-auditing-regulations"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-9b","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=569"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/569\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}