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.
The average cost of fraud increased 35.4% to £3.9m in 2016, compared to 2015 data
Harrison Beale & Owen will (HB&O) have a new chairman and managing director at the helm for 2017
Satvir Bungar promoted to managing director in the mergers and acquisitions team
Carolyn Brown appointed as the first head of client legal services practice RSM Legal