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ARTICLE · 15 JUNE 2020

Former Audit Partners Settle SEC Charges For Improperly Sharing Examination Answers

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Three former audit partners settled separate SEC charges (see here, here and here) for improperly sharing the answers to examinations on training courses internally administered by their firm.

United StatesAccounting and Audit
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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Three former audit partners settled separate SEC charges (see here, here and here) for improperly sharing the answers to examinations on training courses internally administered by their firm.

In separate Orders Instituting Public Administrative and Cease-and-Desist Proceedings, the SEC found that the former audit partners improperly shared questions and answers to the examinations, which were conducted by the firm to ensure that its audit staff understood certain accounting and auditing principles. The Orders also found that once the firm started investigating potential cheating on the examinations, the audit partners falsely denied sharing answers and/or deleting their text messages despite the firm having requested that they preserve the text messages.

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