HARRISBURG – The practice of ethics in accounting and business could be enhanced by a statewide training opportunity and a grant the Department of State’s Bureau of Professional and Occupational Affairs secured from Ernst & Young, according to Secretary of the Commonwealth Pedro A. Cortés.
The firm will provide a free continuing education program on auditor independence for all certified public accountants licensed in Pennsylvania that will be available via Webcast.
In addition, a $50,000 grant will go to the Harrisburg Area Community College to develop a course on ethics in accounting or business.
“The Rendell administration uses innovative solutions to protect commonwealth residents,” said Cortés of the agreement, which was reached through mediation procedures before the State Board of Accountancy. “Using mediation to settle this matter helped expedite caseload processing. As a result, licensed CPAs will benefit from new training programs that will enhance business practices and guard against similar violations from occurring in Pennsylvania.”
The federal Securities and Exchange Commission sanctioned Ernst & Young in 2004 for auditor independence violations from its business relationships with PeopleSoft. The California Board of Accountancy also disciplined Ernst & Young in this matter that same year. The Bureau of Professional and Occupational Affairs considered the remedial steps taken by Ernst & Young and recognized that, since the conduct at issue, the firm has significantly revised its independence policies and procedures.
Generally, Pennsylvania licensing boards consider taking action against any licensee disciplined by another state licensing authority. Disciplinary actions may include civil penalties of $1,000 per count and the suspension or revocation of a license.
For the first time, the Department of State legal office used mediation in lieu of a hearing before the State Board of Accountancy. In the mediation settlement, Ernst & Young agreed to fund the grant to HACC by Dec. 31. The continuing education course is expected to be offered to licensed CPAs by June 30. The method was used as a means to provide extra benefit to accountants licensed in the commonwealth.
The Department of State promotes the highest standards of ethics and competence in professional and occupational licensure, charitable solicitation, and professional boxing and wrestling. It also oversees the electoral process, lobbying disclosure and campaign finance.
More information about the Department of State is available online.