Re: What is the point?
Referring to the audit of Equitable Life by Ernst & Young and theunderstatement of liabilities in the audited Balance Sheet by £1.5 billion,Brian Coulthard asks what is the point of an audit?
(Re: What is the point?)
The answer is that in nearly all cases the auditors do get it right. When theydon’t, they have professional indemnity insurance and unlimited liability toensure they repair any damage.
The question in this case is why is no action being taken against E&Y andits insurers?
Nearly four months after Equitable closed its doors to new business, the ICAEWhas still not decided whether it will deal with the matter internally orrefer it to the Joint Disciplinary Scheme. The FSA refuses to say whetherit’s taking any action and the management of Equitable has made no move.
Meanwhile policyholders have insufficient information or resources to pursue thematter themselves.
Perhaps Mr Coulthard is right.
David Foot