PracticeAuditE&Y could face biggest-ever JDS fine

E&Y could face biggest-ever JDS fine

Big Four firm could face biggest-ever JDS fine over its record on auditing Equitable Life

Ernst & Young could receive the biggest fine in the Joint Disciplinary
Scheme’s history as a result of its record on auditing Equitable Life.

Sources familiar with the case said that the allegations were among the most
serious the JDS has brought. The largest fine in the tribunal’s history so far
is Coopers & Lybrand’s, which had to pay £1.2m in fines and more than £2m in
costs for its role in the Maxwell affair.

The case is set to be heard in private next year, with a QC involved in the
Shipman enquiry and the Ladbroke Grove rail disaster due to preside.

Roger Henderson QC is a former chairman of Joint Disciplinary Tribunals. He
presided in the JDS’s Coopers & Lybrand/Maxwell enquiry.

The charges brought against E&Y are much broader than criticisms made by
Equitable itself in its recent negligence action.

The JDS complaints concern 11 different audits from 1990 to 2000 and a
general complaint in relation to a ‘failure to understand [Equitable’s]
business.’

Equitable’s own action concerned audits over the three years 1998, 1999 and
2000, and specific failures to include provisions for guaranteed annuity rates.
The case was settled recently, with the two sides dropping the action and each
side paying their own costs.

Victoria Cochrane, general counsel for E&Y, said: ‘We are surprised by
these comments, given that this is at a very early stage and we haven’t even
seen the evidence on which the complaints are based.’

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

3d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor