Financial Accounting Blog

Monday, April 19, 2004

Ernst & Young Suspended. Fox News is reporting that Big Four accounting firm, Ernst & Young, has been ordered by a judge to not accept any new SEC clients for the next six months.
Denny Beresford, professor of accounting at the University of Georgia, said the suspension was "relatively mild" because companies do not switch audit firms often.
"I doubt this is going to be any kind of serious business issue for Ernst & Young, but I'm sure it's not something they're happy about from a reputational standpoint," he said.