Ernst & Young Audit Case Dismissed

The Securities and Exchange Commission’s audit-independence case against Ernst & Young was dismissed by an administrative law judge who said the SEC’s one-member vote violated federal rules.

Commissioner Isaac Hunt was the only SEC member who voted, charging Ernst & Young with violating independence rules in its audits of PeopleSoft Inc. SEC Chairman Harvey L. Pitt and Commissioner Cynthia Glassman, who have past ties to the fourth-largest accounting firm, recused themselves. Two other SEC seats are vacant.

The dismissal puts a spotlight on delays by the White House and the Senate in approving SEC nominations.