PracticeAuditEY issues emphasis of matter note on Co-op Bank

EY issues emphasis of matter note on Co-op Bank

EY says issues at the Co-operative Bank may cast doubt on its ability to continue as a going concern

EY issues emphasis of matter note on Co-op Bank

EY’s first public act as auditor of the Co-operative Bank has been to place an emphasis of matter paragraph into its interim statement review.

The Big Four firm, which replaced KPMG as the bank’s auditors earlier this year, said that ongoing issues affecting the lender, including ongoing capital raising and restructuring, may cast “significant doubt” on its ability to continue as a going concern.

EY’s paragraph came as the Co-op revealed a relatively positive set of six-month results.

A £75.8m loss was made for the interim period to 30 June 2014, but its capital position improved, employee numbers were reduced and it posted a credit impairment benefit of £86.7m as a result of “restructuring…two significant relationships”.

Co-op’s directors said in their own going concern statement that they “have a reasonable expectation that the Bank will have the resources to continue in business for the foreseeable future”.

Related Articles

Ukraine central bank removes PwC’s bank auditing rights

Audit Ukraine central bank removes PwC’s bank auditing rights

3m Alia Shoaib, Reporter
FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

4m Alia Shoaib, Reporter
EY audit conflicts weigh on Royal Dutch Shell-BG Group deal

Audit EY audit conflicts weigh on Royal Dutch Shell-BG Group deal

1y Calum Fuller, Reporter
FRC confirms KPMG-HBOS report to be released ‘in spring’

Audit FRC confirms KPMG-HBOS report to be released ‘in spring’

2y Calum Fuller, Reporter
‘Ten years’ to see fruits of mandatory rotation – Non-Big Four auditors

Audit ‘Ten years’ to see fruits of mandatory rotation – Non-Big Four auditors

2y Calum Fuller, Reporter
Deloitte set to face FRC disciplinary over Aero Inventory audit

Audit Deloitte set to face FRC disciplinary over Aero Inventory audit

2y Calum Fuller, Reporter
Auditors face FTSE 350 concerns over cost of transition to new EU audit rules

Audit Auditors face FTSE 350 concerns over cost of transition to new EU audit rules

2y Calum Fuller, Reporter
PwC to take on Weir Group audit

Accounting Firms PwC to take on Weir Group audit

2y Calum Fuller, Reporter