WASHINGTON—Wall Street’s top police officer is cracking down on one of the world’s biggest audit firms—and behind its lawyers.
as part of a $100 million enforcement action Announced Tuesday against Ernst & Young, the Securities and Exchange Commission called on the firm to conduct a separate, follow-up investigation into the actions of its own attorneys and managers. The SEC accused EY of misleading regulators about an internal report of fraud in the required ethical examinations, and suggested that the firm’s attorneys and other executives knew about the tip but failed to disclose it.