Never happen here I’m sure. 100% certain. On lenny’s grave. Pinky promise.
Here of course, the toothless CARB is investigating things. Across the pond, E&Ys auditing of Lehman attracted more focued interest.
I was told that the veeeery first thing you learn as a Graduate Junior Auditor in E&Y is that Ethics is a County East of London.
Damages of 10 years worth of audit tax and consulting fees on a big bank client would push an Irish Big 4 firm to the precipice.
Ernst and Young are about average for the Big 4. Their standards are no better or worse than the other three. In a way they were just unlucky by being caught out not auditing the worst bank in the world. The other non-auditors also failed to audit the other Irish banks (including in the number the second and third worst in the world) but didn’t get caught not auditing as their banks’ sins were deemed lesser than Anglos’.
It isn’t, of course, limited to bank auditors. I have personally encountered a chief executive window-dress the figures of a large semi-state and one of E&Y’s competitor firms signed off without so much as making polite coughing noises.
I think we need to Arthur Andersen at least one of them pour encourager les autre.
I know these people have the corporate memory about as long as a tsetse fly but if nothing else, just like AA, its worth it just for the schadenfreude.
Apparently AA-ing AA didn’t do it, so why should doing it again?
Auditors exist only because of the legal requirement for them to exist - they’re nothing more than official looking stamp of approval, given without much of a thought, but with a massive fee.
My business is small but I deal with a firm of accountants who do the whole whammy of the accountant’s job description. I genuinely believe that it is my responsibility to portray the facts accurately to my accountant. I then pay him for his services (purely as described above!!).as I imagine E&Y were paid by Anglo.
I hope this is not a situation where Sean Fitzpatrick who hood winked the world, stole, extorted, probably laundered, money (no proof of laundering that I am aware of!), that Sean Fitz will get completely off the hook, while the accountant takes the rap and gets struck off or imprisoned or whatever. I believe that any accountancy firm who started questioning the ethics/honesty of the Bank Manager of the fastest growing bank in the world, during the boom, would have been locked up.
Sean Fitz fooled a lot of people along with Fingers Fingleton and the developer schmucks. I don’t believe that the accountants were concealing anything more than any other firm was here, not on purpose anyway. Their reputation would always have been at stake. Sean F fooled us all that business was great. He was a powerful crook with no real malice, just weird levels of greed and no genuine moral standing that I can appreciate in business.
I hope the real crooks don’t get left off the hook while we punish the messenger, so to speak. E & Y gave the facts as they were presented to them I imagine. I could fool my accountant I believe but I don’t! You get caught if you do imo, and Sean F got caught.
I have no connection at all with E&Y by the way or with anyone else mentioned here! Just my take on this
E&Y like any auditor just express an opinion on the accounts put in front of them. Anglo prepared the accounts, and the board of directors are responsible for preparing the accounts. So if the auditor is rapped on the knuckles here, the entire board should get fucked up.
Is there any way they can find E&Y guilty (of any wrong-doing), without implicating the various head honchos at anglo ?
I imagine it would suit the corrupt cronies at the top and the Tent Set from the Galway Races to implicate the whole E&Y bunch and make them out to be a bunch of dunces. Lay the blame at the door of E&Y and have the Anglo crew partying on. Accountants work thru the info given to them by their client.
Maybe that system needs to be examined by the Financial Regulator? Are the clique we have running this country capable of self-regulation of any sort in such an instance?
The question, I suppose, would be whether E&Y should have known that the accounts they were presented with were not an accurate portrayal of the company - whether they asked questions they should have asked. Another matter would be whether E&Y gave an ‘easy’ audit because they were in receipt of other business from Anglo - that an ‘easy’ audit was bought.
Accountants count beans, auditors smell rats.
Good point but can we really think you could give an ‘easy audit’, politely ignoring 7 billion Euro loaned by Michael Fingleton a few days before the audit?! Their whole reputation as auditors is surely on the line at that point. I think Sean F really fooled a lot of people. Fooling an auditor is surely not rocket science in the Celtic Tiger era Ireland, Boom Boom as we all borrow and party and what have you. (Not speaking for me or you here, I imagine, but somebody partied a lot)
Anyone who questioned what was happening should go and kill themselves on the advice of the Taoiseach Bertie if I recollect correctly
Bertie who? Is that the guy with the bogus qualification from the LSE and who did a bit of car park monitoring or some such role?
Don’t forget the loan warehousing… a retarded labrador would have spotted that, unless of course they had been nicely asked to look the other way.
You’ve got to admire the barefaced cheek:
Anglo “unable to identify” persons responsible for audit of its accounts in 2008 -> namawinelake.wordpress.com/2012/ … s-in-2008/
Worlds fail me.
I used to work in Life Sciences - we did internal audits and had external auditors come in and audit us.
If anyone ever gave an answer that hinted at anything remotely close to the above, we would all be fired and the place would be closed down. If it occurred in the states, the FDA would show up with guns to close the place down.
But this being Ireland, it will get a laugh from some.