ERNST & YOUNG IRELAND is to be hauled before a disciplinary panel over its audit of troubled Anglo Irish Bank.
The firm faces accusations of sub-standard work on three counts, the Financial Times states, following a report by former Irish comptroller and auditor-general John Purcell.
E&Y might have tripped up on large loans made by Anglo Irish to its former chairman, Sean Fitzpatrick, and has also come under fire for a loan given to former bank director William McAteer.
Purcell also raised concerns over the way E&Y handled transactions between Anglo Irish and rival bank Irish Life & Permanent during the 2008 crisis.
E&Y Ireland yesterday said it “fundamentally disagrees” with the call for a disciplinary hearing, adding: “This is a preliminary stage of the process and, for the avoidance of doubt, there has been no adverse finding made against Ernst & Young in respect of the audit of Anglo Irish Bank.”
The Chartered Accountants Regulatory Board will now set a date for the disciplinary hearing. E&Y is already embroiled in a legal tussle over its audit of doomed Lehman Brothers, and this accusation could be another blow to its reputation.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned