Barings auditors 'negligent'
Barings’ liquidator Ernst & Young will tell the High Court that the failure by auditors acting for Coopers & Lybrand and Deloitte & Touche to discover Nick Leeson’s £860m unauthorised trading amounted to professional negligence, Accountancy Age has learned, writes Lucinda Kemeny.
In a triple claim, E&Y is taking action against Coopers & Lybrand Singapore for its 1994 audit of Barings London as well as the firm’s London office which acted as watchdog. Deloittes is also being sued because it was auditor for the years 1992 to 1993 before Coopers’ appointment.
‘The claim is for professional negligence in the conduct of the audits of a number of Barings companies between 1991-1994,’ an E&Y spokesman said. ‘We believe that they did not meet the standards required and failed to discover Leeson’s trading which we contend they should have.’
The £1bn trial is due to begin in February 2001 and is likely to last at least 30 weeks.
With legal fees expected to run to several million pounds, Deloittes and Coopers offered to settle last year. But now the firm’s legal argument has been settled, E&Y’s head of insolvency Alan Bloom said the firm was ‘going hell for leather’ for a court hearing.
PricewaterhouseCoopers has contacted Leeson’s solicitor but has not yet interviewed Leeson, who has already met E&Y and Deloittes. He is not expected to stand trial.
The numbers you crunch tell a story. Your expertis...
25yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe shift to cloud-based accounting marks a significant transformation, enhancing efficiency, collaboration, and data security, and setting new standa...
View articleOn February 28, Xero became the latest accounting technology provider to launch a new AI assistant. ‘Just Ask Xero’ or JAX was announced a...
View articleThe collaboration between OCR and AI in automating the AP workflow marks a significant stride towards operational excellence. Read More...
View articleThomson Reuters has successfully acquired Pagero, a Swedish e-invoicing and tax solutions company, for approximately $800 million. The content and tec...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleWith so many accounting software options on the market today, from QuickBooks to FreshBooks to Xero, it can be overwhelming for small business owners ...
View articleThe Horizon scandal has shed light on the crucial role of ethical practices in the accounting technology industry, and underscored the need for transp...
View articleAccountants in industry must upgrade wisely to help their businesses evolve, according to Nick Longden of AccountsIQ Read More...
View article