Meet the Auditors – Ernst & Young

The Global Leadership Team for E&Y is a short but sweet list – with two women on it!

You’ve come a long way, baby…

Big Four Competition: Ernst & Young Maintains Advantage
Ames Research Group released their latest Big Four Quarterly Competitive Summary (posted on their site November 21, 2006), covering competitive auditor change activity between the fourth quarter of 2005 and third quarter of 2006.

Per their analysis, Ernst & Young continues to perform well in winning new work and doing so efficiently. E&Y won the most new clients during the 12 months covered, and the firm won almost 50% of the engagements on which it proposed.

FILE NO. 3-10933

Before the
April 16, 2004
In the Matter of

APPEARANCES: Stephen M. Sacks, Andrew T. Karron, Randall K. Miller, Robert J. Katerberg, Matthew Laden, and Kathy A. Ladun of Arnold & Porter LLP, and Ralph C. Ferrara and Phillip D. Parker of Debevoise & Plimpton LLP for Ernst & Young LLP

Patricia A. Connell, Associate General Counsel, Ernst & Young LLP

Larry P. Ellsworth, Craig Iscoe, Michael A. Ungar, Jon B. Jordan, J. Lee Buck, II, and Russell G. Ryan for the Securities and Exchange Commission’s Division of Enforcement and the Office of the Chief Accountant1

BEFORE: Brenda P. Murray, Chief Administrative Law Judge
I FURTHER ORDER, pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission’s Rules of Practice, that Ernst & Young LLP is suspended from accepting audit engagements for new Commission registrant audit clients for a period of six months from the date this Initial Decision becomes effective.

Energy and Commerce Leaders Launch HealthSouth Investigation
April 22, 2003

Mr. James S. Turley
Chairman of the Board
Ernst & Young
5 Times Square
New York, NY 10036-6530

Dear Mr. Turley:

For the past two years, the Committee on Energy and Commerce has investigated numerous corporate scandals relating to questionable accounting practices, including the quality of management oversight by the respective boards of directors, at publicly traded companies such as Enron Corporation, Global Crossing, Qwest and Worldcom. …it appears that HealthSouth has now joined this list of companies and will undertake a massive restatement of reported revenues and earnings spanning several years due to fraudulent accounting practices. It is our understanding that Ernst & Young was HealthSouth’s accountant throughout the time period in which it is alleged this accounting fraud took place…

SEC: Ernst & Young Violated Rules
Nov. 15, 2002 (Associated Press) — Federal regulators, after an initial failure, alleged for a second time Wednesday that Ernst & Young violated rules designed to keep accountants independent from the companies they audit when it engaged in business with a software company client.

The Securities and Exchange Commission took the action again against the big accounting firm now that there are enough SEC commissioners without a conflict of interest in the case. An administrative law judge at the SEC dismissed it several months ago because only one commissioner had voted to authorize the action.

SEC Censures Dutch Ernst & Young Firm
and Orders It to Pay $400,000 Civil Penalty
Washington, D.C., June 27, 2002 – In the first-ever auditor independence case against a foreign audit firm, the Securities and Exchange Commission today brought a settled enforcement action against Moret Ernst & Young Accountants (“Moret”), a Dutch accounting firm now known as Ernst & Young Accountants. The case arises from Moret’s joint business relationships with an audit client.

James S. Turley
Chairman and Chief Executive Officer

Jim Turley joined Ernst & Young in the United States in 1977 after receiving a bachelor’s and a master’s degree from Rice University in Texas. He became a US partner in 1987. Jim was named Deputy Global Chairman in 2000, Chairman in 2001 and CEO in 2003. Prior to that, he was the Managing Partner of Ernst & Young US’s Metropolitan New York area, and before that, Managing Partner of the Upper Midwest Area of the US. He also served for a number of years as a US Area Director of Entrepreneurial Services. Throughout his career, Jim has been the Coordinating Partner on a number of major client engagements.

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