Ernst & Young begins Equitable appeal

Ernst & Young’s appeal against the findings of a professional
disciplinary process started over the firm’s work on the audit of Equitable Life
gets under way today.

As a result of the appeal application details of the appeal have yet to be
made public.

The appeal is being heard by a tribunal of the Joint Disciplinary Scheme
(JDS) for accountants and is scheduled to run for the next two weeks.

The final report of the JDS was completed in December last year but did not
emerge after the firm obtained an injunction blocking the report from being sent
to the Financial Services Authority, the regulator for insurance companies.

The injunction was lifted in June after the firm withdrew from a judicial
review.

The disciplinary action against E&Y originally began in 2004 when
complaints were brought by the profession’s disciplinary body.

Among the complaints were allegations that E&Y delivered unqualified
audit opinions when the accounts for 1990 to 1993 had not been properly
prepared, and that unqualified opinions were offered on accounts, which did not
represent a ‘true and fair view’, from 1994 to 2000.

Ernst & Young said it would not make a comment at this stage.

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E
&Y appeals against ruling in Equitable Life case