The Texas State Board of Public Accountancy (TSBPA) approved an Agreed Consent Order on November 9, 2023, imposing a reprimand and an administrative penalty of $3,000,000 against Ernst & Young LLP (EY). This penalty stands as the highest ever assessed by the Texas Board against a CPA firm. The board issued the press release on November 10, 2023.
The basis for this punitive action stems from EY’s involvement in a Securities and Exchange Commission (SEC) order. The SEC found that numerous professionals licensed as Texas CPAs within EY had engaged in unethical practices, including cheating on ethics exams and various other required examinations for maintaining their Texas CPA licenses. Additionally, the SEC determined that EY had failed to disclose this misconduct to the SEC staff conducting the investigation.
In conveying the significance of this decision, TSBPA Executive Director William Treacy stated, “The action represents the Board’s message to all Texas licensees that the Board will not tolerate any form of professional misconduct,” This underscores the Board’s commitment to maintaining the highest standards of professional conduct within the accounting industry in Texas.
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