PracticeConsultingE & Y defends Dome audit role

E & Y defends Dome audit role

Ernst & Young has defended its position as auditors to the Dome as police were called in to investigate allegations of fraud.

The New Millennium Experience Company, operator of the Dome, has passed details of the fraud to Scotland Yard’s fraud squad after contract procurement irregularities came to light earlier in the year.

In a statement, the NMEC said: ‘The Dome’s rigorous internal control systems identified a possible irregularity relating to one contractor. The police have been kept informed since June.’

However, a leaked report from PricewaterhouseCoopers cast serious doubts over financial controls at the NMEC. The PwC report also revealed that the Dome would technically have been insolvent without the new injection of cash, questioning the role of its directors.

E&Y sought to defend its role at the Dome, saying that there was a ‘fundamental misconception of our role as external auditor, which primarily is to provide an opinion of the truth and fairness of its historic accounts.’

The firm highlighted the last audit report for December 1999 which questioned the ability of the company to be able to continue its operations within the then currently agreed funding.

The National Audit Office is due to publish a report at the end of October on the operation of the Dome over the year. A spokesman for the NAO said that the role of the external auditors would not form a major focus of the investigation.

Seperately, the NMEC confirmed there were no plans for its FD Neil Spence to leave following the appointment of trouble-shooter David James.

Extent of Dome crisis revealed Dome saviour blasts NMEC board

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer