The SEC's Division of Enforcement brings action against auditors exhibiting "improper professional conduct" as outlined in Rule 102(e) of the SEC's Rules of Practice.
Required
a. Identify the circumstances that are considered to be "improper professional conduct" per Rule 102(e).
b. Several actions were taken against auditors of banks as a result of the credit crisis of 2008, with proceedings continuing as late as 2016. These banks eventually failed or lost significant value subsequent to the audits. Examples include TierOne Bank and Orrstown Financial Services, Inc. Explain what improper professional conduct is likely to have occurred in audits of these banks.

Question

Quizplus · Accepted Answer

The Answer of The SEC's Division of Enforcement brings action against auditors exhibiting "improper professional conduct" as outlined in Rule 102(e) of the SEC's Rules of Practice.
Required
a. Identify the circumstances that are considered to be "improper professional conduct" per Rule 102(e).
b. Several actions were taken against auditors of banks as a result of the credit crisis of 2008, with proceedings continuing as late as 2016. These banks eventually failed or lost significant value subsequent to the audits. Examples include TierOne Bank and Orrstown Financial Services, Inc. Explain what improper professional conduct is likely to have occurred in audits of these banks.

The SEC's Division of Enforcement Brings Action Against Auditors Exhibiting