Let’s begin with a confession and an apology. On June 28, the SEC announced that it had charged Ernst & Young LLP with extensive cheating by its employees on exams required to obtain and maintain Certified Public Accountant (CPA) licenses. Moreover the Big Five firm withheld evidence of this misconduct from the Security and Exchange Commission’s Enforcement Division during the SEC’s investigation. EY admitted the facts leading to the SEC’s charges and agreed to pay a $100 million penalty. [You can read the SEC’s press release here.]
I have no idea how I missed such a major and troubling ethics story. It’s my job to keep up on such matters; I teach accounting ethics, though I haven’t had a training assignment for that profession since the pandemic hit. I apologize profusely. I will work to do better. While the various breaches of government, journalism, legal and business ethics that occupy most of my attention on Ethics Alarms are important, none are more ominous than this story. It really feels like the canary dying in the mine.






