#ProfessionalconductstandardsEY

[thxnews]

Ernst & Young Gets $3M Fine by Texas State Board

  Historic Decision Shakes Ernst & Young

In an unprecedented move, the Texas State Board of Public Accountancy approved an Agreed Consent Order on November 9, 2023, imposing a reprimand and an eye-watering $3,000,000 administrative penalty on Ernst & Young LLP (EY). This penalty stands as the largest ever assessed by the Texas Board against a CPA firm.   Securities and Exchange Commission Unearths Cheating Scandal EY found itself in the crosshairs of the Securities and Exchange Commission (SEC) due to a litany of transgressions. The SEC's order exposed several licensed Texas CPAs associated with EY who had cheated on ethics exams and various other crucial examinations required for maintaining their Texas CPA licenses. Shockingly, the SEC also revealed that EY had concealed this misconduct from their staff and the SEC investigators involved in the probe.  

Texas Board's Resolute Stand on Professional Misconduct

"The action represents the Board's message to all Texas licensees that the Board will not tolerate any form of professional misconduct," emphasized William Treacy, the Executive Director of the Texas State Board of Public Accountancy. This groundbreaking decision sends shockwaves through the industry, underscoring the Board's unwavering commitment to upholding the highest standards of professional conduct.   Safeguarding the Public Interest - The Mission of the Texas Board The Texas State Board of Public Accountancy has a paramount mission — to protect the public by ensuring that individuals granted CPA certificates possess the necessary education, skills, and capabilities. Operating under the authority of Chapter 901 of the Texas Occupations Code, known as the Public Accountancy Act, the Board safeguards the public's reliance on the competence of certified public accountants when seeking financial expertise.  

Board's Authority and Stewardship

The Act, providing for 15 Board members appointed by the Governor, establishes the framework for the Board's authority. Board members, citizens of the United States, and residents of Texas serve six-year staggered terms. The Act's mandate underscores the importance of examining, certifying, and licensing certified public accountants to ensure competence in the profession. This stewardship is essential to maintaining public trust and safeguarding the interests of those who rely on certified public accountants for financial guidance.   Sources: THX News & Texas State Board of Public Accountancy. Read the full article