US regulators scrutinise Ernst & Young
US accounting inspectors pay second visit to UK offices of Ernst & Young
The Public Company Accounting Oversight Board, the US audit watchdog, and
sent its inspectors into the UK offices of Ernst & Young.
The FT reports that the inspections represent a further example of
regulatory creep, where UK audit firms and companies are subject to the onerous
requirements of the US’s Sarbanes-Oxley regulatory regime.
The PCAOB had already visited E&Y’s Tower Bridge offices for two weeks in
August, when its staff interviewed accoutants and scrutinised audit documents
related to client engagements.
PCAOB inspections of PwC UK and KPMG UK are also expected.