fb

Would you have done this if you were an Ernst & Young partner?

Would you have done this if you were an Ernst & Young partner?

An Ernst & Young (EY) partner has been rather naughty. In fact, I should straight away say that he quickly became a former EY partner as soon as EY found out what he had done.

So, what did he do?

Well, put it this way but it wasn’t the most professional of things to do.

The Public Company Accounting Oversight Board (PCAOB) is the main “watchdog” of the US auditing profession. As part of their quality review procedures they look at samples of audit working files of registered audit firms.

EY were selected for a review and in particular the audit of one of the clients of Peter O’Toole, an EY partner who had been with the firm for 20 years.

Now, it appears that Mr O’Toole’s work on this particular client wasn’t exactly complete and he tried to hide the fact that the work was incomplete by going back to the audit files and doing a quick “tidy up“ before the PCAOB visit.

Working together with a senior manager (who unsurprisingly is also now no longer with EY), Mr O’Toole created fake documents about work they said they had completed hoping that these fake documents would go unnoticed and the PCAOB would sign off on the audit files.

Alas for Mr O’Toole the backdated fake documents were identified and his dishonesty was found out.

If there’s one key lesson from this it’s probably that it’s best to be honest and not try to cheat with things.

As a result of faking the documents, Mr O’Toole lost his job of 20 years with EY, was barred from auditing for 3 years by the PCAOB and had to pay a civil penalty of $50,000.

If instead of trying to falsify things he had simply owned up to his mistake the chances are that he would have had a “slap on the wrist” and would still be in his job.

Share this entry

Recent articles

View All Articles
Women at the Top: EY Becomes First Big Four Firm with Dual Female Leaders
Apr 01, 2025
Title
Women at the Top: EY Becomes First Big Four Firm with Dual Female Leaders
Excerpt

EY has just made history – Alison Duncan will take over as UK Chair of EY, joining forces […]

When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Mar 26, 2025
Title
When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Excerpt

What happens when auditors fail to properly understand the business they’re auditing? That’s the question at the heart […]

Volkswagen sells more sausages than cars
Mar 18, 2025
Title
Volkswagen sells more sausages than cars
Excerpt

No, we’ve not made an early April Fools Joke. It’s true. Volkswagen do sell more sausages than cars. […]

EY UK restructures leadership: 30 partners to exit
Mar 16, 2025
Title
EY UK restructures leadership: 30 partners to exit
Excerpt

The professional services industry is experiencing a shift, with EY announcing one of its most significant partner redundancy […]

Worth its weight in gold?
Mar 14, 2025
Title
Worth its weight in gold?
Excerpt

When most people think of gold, they picture sparkling jewellery, luxury accessories, or even Olympic medals. But gold […]

Over paid, under performing… the players or the shares?
Mar 11, 2025
Title
Over paid, under performing… the players or the shares?
Excerpt

Manchester United recently announced plans for a new 100,000-capacity stadium, with an estimated cost exceeding £2 billion. While […]

Top 10 unusual KPIs: strange ways businesses measure success
Mar 04, 2025
Title
Top 10 unusual KPIs: strange ways businesses measure success
Excerpt

Key Performance Indicators (KPIs) are essential for businesses to measure performance and track progress. While traditional KPIs focus […]

Bull vs. Bear Markets: what do they mean?
Feb 28, 2025
Title
Bull vs. Bear Markets: what do they mean?
Excerpt

If you keep up with the financial press, you’ll come across terms like “bear market,” “bull market,” and […]