It’s very fishy indeed. What EY people did Anglo correspond with by email during the audit?
Anglo auditor went on to win state contracts -Roisin Burke -> independent.ie/business/iris … 12086.html
Newsnight on BBC reports Ernst and Young turning yet another blind eye to shady dealings…
Unless things have changed radically from my day, multi-national accountancy firms are essentially a collection of separate firms, there is no relationship (or ethos) between them other than that they all make financial contributions towards the global brand and certain other expenditures. Sure they try and maintain consistent behaviour in terms of audit practices between countries and they’ll hold conferences to that effect, but really, these are separate practices and they often compete with each other.
What I don’t understand is how these firms keep on getting awarded contracts to investigate their own and each others wrongdoings, it’s absolutely ludicrous, but not surprising for Ireland.
It’s a shame they can’t be brought to book like Arthur Anderson was…
Isn’t IAASA rather than CARB the people to investigate this?
where do you think the AA partners and directors ended up?
At another big 5, er, 4!
Anglo witnesses ‘coached’, Sean FitzPatrick trial hears - -> irishtimes.com/news/crime-an … -1.2952223
From the Stupid Auditor Tricks file: PWC fucks up the Oscars
Here’s a PWC promo video about how great they are for the Oscars. Some choice bits.
Ernst and Young lost yet another one, that is Wirecard AG headquarters in Germany with a mysterious Dublin operation named “Wirecard UK and Ireland” which helpfully booked some very suspect sales numbers in order to help inflate the valuation bubble.
Their auditors were Ernst and Young…and they seemingly noticed nothing.
Wirecard had collapsed to €2bn market cap from €28bn market cap in 2 years flat. Well done to Ernst and Young…again. They may be gone within the week.
Is Donald Rumsfeld an advisor?
$2.1 Billion cash went missing. Just like that. Easy come. Easy go.
the German payments company became untenable after revelations on Thursday that about 1.9 billion euros ($2.1 billion) – two-thirds of 2019 revenue and about a quarter of the firm’s consolidated balance sheet – had gone missing. Two Asian banks that were supposed to be holding the money it denied any business relationship with Wirecard, raising fresh questions about the embattled company.
Bitcoin territory… isolated incident or more to come this year?
I would say E&Y have to go the way of Arthur Andersen after the Wirecard fraud.
They audited Wirecard for years and the German financial regulator implicitly backed E&Y to the absolute hilt with ultra aggressive actions against anybody who pointed out the holes in the Wirecard story (going back more than 10 years these holes were as you can see below) . The German financial regulator were even after FT journalists who had the story well before any other major financial publication.
Either the German financial regulator (Bafin) or E&Y have to go, after that one, …and you can guess which one I think is most vulnerable here.
Worth reading up on the pileup of shite on E&Ys doorstep as well.
Wirecard files for insolvency. Surprise surprise.
Also on Friday, it emerged that Ernst and Young, which audited Wirecard for a decade before its collapse, failed for more than three years to request supporting evidence for the company’s claims that it had up to €1 billion in cash with a Singapore bank.
Yikes. I wonder what German white collar crime sentencing is like. In Ireland you probably just get 12 months and barred from being a director for 5 years…
Well this is overdue…
The UK’s “big four” accountancy firms have been told to fence off their auditing operations, as part of a drive to oversight of corporate finances in the wake of high-profile collapses such as Carillion and BHS.
The industry’s regulator, the Financial Reporting Council, told KPMG, PwC, Deloitte and EY that it expects them to have separated their auditing divisions from the rest of their operations by June 2024.