Firm Memoranda

SEC Administrative Order Flags Lobbying as an Auditor Independence Issue

Date: 07/18/14

On July 14, 2014, the Securities and Exchange Commission (“SEC”) commenced administrative proceedings charging Ernst & Young (“E&Y”) with auditor independence violations after finding that one of E&Y’s subsidiaries provided improper lobbying services to two of its SEC-registrant audit clients. To settle the charges, E&Y agreed to pay over $4 million in civil penalties without admitting or denying any wrongdoing.

CGR Memo - SEC Administrative Order Flags Lobbying as an Auditor Independence Issue.pdf (pdf | 128.21 KB )