WASHINGTON—Wall Street’s top cop is putting the screws to one of the world’s biggest audit firms—and going after its lawyers, too.
As part of a $100 million enforcement action announced Tuesday against Ernst & Young, the Securities and Exchange Commission demanded the firm undertake a separate, follow-up investigation into the actions of its own lawyers and managers. The SEC accused EY of misleading regulators about an internal report of cheating on required ethics exams, and suggested the firm’s lawyers and other executives were aware of the tip but failed to reveal it.
