Accounting, Litigation, Censures and Fines

Examples of litigation cases against national public accounting firms include fines by
regulatory authorities and censures by professional societies.
Write a 4 page paper in which you:
1. Analyze the primary accounting issues which form the crux of the litigation or fine for
the firm, and indicate the impact to the firm as a result of litigation or fine. Provide
support for your rationale.
2. Examine the key inferences of corporate ethics related to internal controls and
accounting principles which lead to the litigation or fine for the accounting firm.
3. Evaluate the primary ethical standards of the accounting organization’s leadership and
values which contributed to approval of the accounting issues and thus created the
litigation or fines in question.
4. Identify specific conduct violations committed by the organization and accounting firm
in question. Next, create an argument supporting the actions against the organization
and accounting firm, based on the current professional code of conduct for
independent auditors and management accountants.
5. Make a recommendation as to how regulators and professional societies may prevent
this type of behavior in question for the future. Provide support for your rationale.
6. Use two (2) quality academic resources in this assignment. Note: Wikipedia and other
Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
 Be typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or school-specific
format. Check with your professor for any additional instructions.
 Include a cover page containing the title of the assignment, the student’s name, the
professor’s name, the course title, and the date. The cover page and the reference
page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
 Analyze business situations to determine the appropriateness of decision making in
terms of professional standards and ethics.
 Use technology and information resources to research issues in accounting.
 Write clearly and concisely about accounting using proper writing mechanics.

Answer Preview…………….

Ernst & Young Audit Failures. Primary Accounting Issues that caused Litigation and the Impact to the Firm. Ernst & Young whose headquarter is in London is one of the largest international professional service company and among the “big four” accounting companies in the world. It has over 250,000 workers in its 700 branches all over the world. It provides services such as financial audit, consulting, advisory services and tax to companies (DeFond, Lennox & Zhang, 2018). In 2012 February 8th, the Public Company Accounting Oversight Board (PCAOB) settled a disciplinary action against Ernst & Young. PCAOB imposed the largest money penalty of $2 million ever given any company. It also sanctioned four of its partners for violating the rules and standards of the PCAOB. The primary issue concerned three audits performed by Ernst & Young to Medicis Pharmaceutical Corporation as well as a consultation originating from an internal audit quality analysis among the audits internally done. The respondent did not dispute or accept the board’s findings but just agreed to settle. Additionally, although Ernst & Young and partners had…………..

APA 1280 words