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‘Simply Outrageous:’ EY Hit With $100 Million Fine After Audit Employees Cheat on CPA Ethics Exam

  • Almost 50 employees shared answer keys, regulator says
  • Firm admitted to lapses in paying a record auditor penalty
The offices of EY in London.

The offices of EY in London.

Photographer: Tolga Akmen/AFP/Getty Images

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Ernst & Young LLP admitted that dozens of its audit personnel cheated on the ethics portion of the Certified Public Accountant exam and that the firm misled US regulators probing the misconduct, according to the Securities and Exchange Commission.

The SEC announced on Tuesday that EY would pay a $100 million fine -- the largest ever penalty for an audit firm. In addition to violating accounting rules, EY didn’t cooperate with a key part of the regulator’s probe, the agency said.