Ernst & Young to Pay $8.5M to SEC over Bally Audits

Ernst & Young to Pay $8.5M to SEC over Bally Audits | Accounting Today

Among the partners charged was Randy Fletchall, a former chairman of the American Institute of CPAs. He and the other partners have also agreed to settle with the SEC, without admitting or denying wrongdoing. The SEC said that E&Y knew or should have known about Bally’s fraudulent financial accounting and disclosures.

大手会計事務所のパートナーで、然もAICPAの会長を勤めたような人が、

The SEC said when it charged Bally last year that from at least 1997 through 2003, Bally's financial statements were affected by more than two dozen accounting improprieties, which caused Bally to overstate its originally reported year-end 2001 stockholders’ equity by nearly $1.8 billion, or more than 340 percent. The health club also understated its originally reported 2002 net loss by $92.4 million, or 9341 percent; and understated its originally reported 2003 net loss by $90.8 million, or 845 percent.

これを見て見ぬふりをしていたなんて、かなり驚きました。