Big companies and their outside auditors often have close professional relationships. But now, for the first time, US regulators have taken enforcement action over relationships that became a little too close: it has fined professional services firm Ernst & Young $9.3m for failures including an auditor’s romantic involvement with a client. Investigations by the Securities and Exchange Commission have found that a senior EY partner involved in the audit of a New York-based public company forged an improperly close friendship with the company’s chief financial officer and spent more than $100,000 on corporate entertainment for the executive.
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