Ernst & Young Censured, Fined $2M Over Faulty Audits

Law360, New York (February 8, 2012, 7:48 PM EST) -- Public accounting regulators said Wednesday that they had censured Ernst & Young LLP, sanctioned four current and former partners, and fined the company $2 million in order to settle allegations E&Y performed faulty audits for dermatological drugmaker Medicis Pharmaceutical Corp.

The Public Company Accounting Oversight Board said E&Y violated rules and standards when performing audits on the 2005 to 2007 financial statements of Medicis by accepting the company's accounting of its sales returns revenue. The irregularities were uncovered during a 2008 inspection of E&Y's audits by...
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