SEC Seeks to Bar Ernst From Taking Clients
In a rare move, federal regulators are seeking to have Ernst & Young suspended from accepting new corporate clients for six months because of the big accounting firm’s alleged failure to remain completely independent from companies whose books it audits.
The Securities and Exchange Commission contended in a legal proceeding before an administrative law judge that Ernst & Young’s internal controls were inadequate to prevent its auditors from becoming too cozy with client firms.
Spokesmen for New York-based Ernst & Young didn’t return a telephone call seeking comment.
From Associated Press