SEC Charges Big Accounting Firm with Violating Auditor Independence Rules in Lobbying Activities

The SEC charged Ernst & Young LLP with violations of auditor independence rules that require firms to maintain their objectivity and impartiality with regard to clients.

According to the SEC's order, an Ernst & Young subsidiary lobbied congressional staff on behalf of two audit clients, which the SEC found violated the auditor independence rules by putting the firm in the position of being an advocate for its audit clients.

See: SEC Order; SEC Press Release.