The embattled firm was accused by the US financial watchdog of having ‘acted recklessly’ and shown ‘a lack of competence to practice before the Securities and Exchange Commission’ in its dealings with IT supplier PeopleSoft.
E&Y supplied PeopleSoft with its Global Expatriate Management System and various consulting services, until the firm’s consulting arm was sold in May 2000. The firm also audited PeopleSoft’s financial statements between 1994 and 1999.
The SEC ruling concluded that: ‘The overwhelming evidence is that during the relevant period, E&Y’s day-to-day operations were profit-driven and ignored considerations of auditor independence in business relationships with PeopleSoft.’
A statement issued by the firm claimed that ‘the ruling will not have any impact on the UK practice’. A spokesman for the UK firm said there was no ‘material impact’ on the firm, but said that there could be a reputational one. ‘Every development of this kind is a step backwards,’ he said.
Richard Cartwright becomes the new head, taking over from incumbent head of office David Lemon
Brian Burke, business development director, has moved within the firm to 'develop Quantuma’s networks with Sussex professional firms'
Stephen Mills joins the Manchester office from IBM, where he spent 12 years as an associate partner in the data, analytics and cognitive consulting group
Rupert Guppy will be responsible for capital allowances in the southern region, and joins the firm from specialist consultancy E3 Consulting