Please read the case involving EY, a large accounting and audit firm. EY is globally recognized as...

Question

Please read the case involving EY, a large accounting and audit firm. EY is globally recognized as an industry leader in audits but was found guilty of cheating. Cheating, on of all things, ethics exams.

As you read the article, remember the concepts form Chapter 9 and discuss the following.

1. How does this impact the "mature profession" of EY and the accounting industry as a whole?

2. What "harm" was caused by cheating?

3. What should EY or the industry do to help mitigate this type of event from repeating?

https://www.sec.gov/news/press-release/ XXXXXXXXXX

Dr. Saloni · Accepted Answer

1
EY Company
Answer 1
A mature profession requires its members to complete a preliminary professional education. The Wall Street watchdog revealed that 49 EY personnel "circulated or obtained" the answer key to the CPA licence exam, whereas hundreds more cheated to accomplish CPE elements pertaining to CPA ethics. Hundreds more are defrauded of continuing professional education. A mature profession encourages high professional standards and the swift dissemination of novel understanding. This cheating, combined with a thread of similar instances in other industries, threatens to damage a sector that offers itself as a trustworthy preserver of the public's interests, from tax-paying citizens to shareholders (Buchwald 2022).
Under the order, employees clarified that they cheated as a result of being preoccupied with other duties or because they couldn't successfully complete the test upon repeated attempts. This points to a deeper, fundamental issue confronting audit industries: overworked employees with insufficient time to plan for or attend professional training. It's a negative sign at the highest level if the leader doesn't often provide employees with the assets, time, and techniques they require to succeed (Newmyer 2022). This behaviour includes infringements of faith by gatekeepers who have been entrusted with auditing many of this country's public industries. It's ludicrous that the eternal professionals in charge of locating client cheating are scammed on ethics tests. EY sowed the seeds of a crisis that might have been prevented (Goldstein 2022).
There was an infringement of the industry's conduct code in this situation. The stated reasons for such ethical failings are possibly the most disconcerting aspect of these cheating fiascos. As stated by the SEC, several EY workers were aware that their actions breached the company's code of conduct, and yet they continued to engage in them since they couldn't progress all by themselves (Gibson 2022). This merely serves as an excuse for unethical behaviour and is unworthy of a credentialed audit professional. These breaches cast doubt on the professional integrity of the financial or accounting industries as well as the beliefs that should encourage ethical behaviour (Newmyer 2022).

Please read the case involving EY, a large accounting and audit firm. EY is globally recognized as an industry leader in audits but was found guilty of cheating. Cheating, on of all things, ethics...

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