E&Y at 'a loss' over Equitable concerns
Ernst & Young says it was not contacted for information by the forensic accountants who concluded there were 'serious concerns' about the Big Five firm's audit work at Equitable Life.
Equitable went public yesterday with the news that it had written a letter to E&Y asking for an explanation for the concerns, but the firm today said it had so far received no such letter.
The news is the latest in the Equitable Life debacle which began when the insurer announced, a year ago, it could take no new policies.
Equitable managers have since commissioned City lawyers Herbert Smith and forensic accountants from PricewaterhouseCoopers to examine the role of former directors and the auditors.
E&Y responded today saying: ‘Neither PwC nor Herbert Smith have made any contact with the firm during their inquiry. Without access to E&Y we are at a loss to understand how they have reached their conclusions.
‘We are confident that the audit for Equitable was appropriate and robust and we stand by its conclusion.
‘We will vigorously defend ourselves against any legal action that may follow.’
Links
Equitable crisis deepens for E&Y
E&Y to face action over Equitable
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Treasury to grill FSA over Equitable