Ernst & Young: SEC's Request is 'Outrageous'

In late May 2003, SEC staff recommended a six month suspension of new client acquisition for Big Four firm Ernst & Young, in response to alleged independence violations in its relationship with audit client PeopleSoft in the late 1990s.

E&Y has formally responded to the SEC recommendation, calling it an "outrageous" overreaction to claims of independence misconduct.

E&Y attorney Stephen Sacks has filed a court briefing in which he indicates that the SEC's staff recommendation "misleads the public and the marketplace into thinking that there is something wrong with E&Y's independence procedures today." The SEC recommendation was based on alleged independence violations between E&Y and its audit client PeopleSoft, an arrangement that ended over three years ago, according to Ernst & Young.

"The staff's post-trial request for a six-month suspension and appointment of an independent consultant is outrageous," said Sacks.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.