The Globe and Mail reports in its Wednesday edition that Ernst & Young will pay $11.8-million (U.S.) to settle charges over "failed audits" of oil services company Weatherford International Inc., the U.S. Securities and Exchange Commission said on Tuesday. A Reuters dispatch to The Globe says that an EY partner who co-ordinated the audits and a former tax partner who was involved in the audit were also charged in the SEC's order. Under the settlement, both agreed to suspensions from working as accountants in SEC-related matters after disregaring "significant red flags" during the audits. The charges followed a $140-million (U.S.) penalty on Weatherford last month to settle charges it inflated earnings in its 2007-10 financial statements. Weatherford, which had been promoting its favourable tax rate to analysts, restated its earnings in 2011. EY spokesman Amy Call Well said in a statement, "Since the time of the Weatherford audits, and as referenced in the SEC Order, EY has taken significant steps in improving audit quality." The SEC found that EY classified Weatherford audits as high risk but repeatedly failed to detect the company's fraud until it had continued for more than four years.