You Can't Do This, we're Ernst and Young

Duisigh · **Joined:** May 28, 2008 **Posts:** 2676

If there was a glee policy I'd be chortling like Popeye.

yoganmahew · **Posted:** Fri May 13, 2011 3:46 pm

Duisigh wrote:

If there was a glee policy I'd be chortling like Popeye.

Chortle away. On the 'pin, corporations are not yet considered persons.

jxbr · **Joined:** Aug 2, 2009 **Posts:** 1513

Ernst and Young - the same people who brought us the AIB/Insurance Corporation of Ireland fuckup.

They could not audit the proceeds of a scout raffle.

There is a case wending its way through the Commercial Court where the very same set of useless fuckers are on the line for €30 million because of bad (that is completely incorrect) tax advice.

jacobmarley · **Joined:** Dec 5, 2007 **Posts:** 814

Quote:

E&Y faces probe on Anglo Irish Bank audit
By Adam Jones in London and Jamie Smyth in Dublin
Published: September 14 2011 19:16 | Last updated: September 14 2011 19:16
Ernst & Young faces a fresh threat to its reputation after an Irish accounting regulator said it would hold a disciplinary hearing to examine E&Y’s auditing of Anglo Irish Bank, a lender that had to be rescued by the Irish government in 2009.

Already contesting a US lawsuit over its vetting of Lehman Brothers’ accounts, E&Y’s handling of the Anglo Irish audit has been challenged in three key areas by a special investigator hired by the Chartered Accountants Regulatory Board.

The Irish arm of E&Y on Wednesday said it would defend itself vigorously, saying it “fundamentally disagrees” with the decision to initiate a formal disciplinary process.

“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,” it said.

The move by the CARB, the regulatory arm of the Chartered Accountants Ireland professional body, is a rare example of a watchdog hauling a bank auditor into the spotlight over its conduct before and during the financial crisis.

It follows a report by John Purcell, a former Irish comptroller and auditor-general, who said there appeared to be a disciplinary case for E&Y to answer in three areas of financial disclosure.>>>>>snip

http://www.ft.com/intl/cms/s/0/e28c7832 ... z1Y0TraF4m

jxbr · **Joined:** Aug 2, 2009 **Posts:** 1513

Ernst and Young has form here. They advised AIB in their purchase of Insurance Corporation of Ireland and did not discover the Ponzi scheme that was their London office.

For a history lesson, see http://www.highbeam.com/doc/1G1-14250539.html or http://en.wikipedia.org/wiki/Allied_Iri ... of_Ireland or http://web.archive.org/web/200602221025 ... reland.pdf.

This was the original bank bailout with AIB getting a free Get-Out-Of-Jail card for their greed, stupidity and arrogance. Of course, it did not do them any harm that they had loans outstanding to the current and former Taoisigh (Saint Garrett and Squire Hockey) at the time and wrote off both their loans.

Ernst and Young could not find an open sewer with a bloodhound and an obvious trail of shite starting at their feet.

ewd3 · **Joined:** Nov 7, 2007 **Posts:** 5669

jxbr wrote:

Ernst and Young could not find an open sewer with a bloodhound and an obvious trail of shite starting at their feet.

And as a result are paid handsomely for their Anosmia*

*http://en.wikipedia.org/wiki/Anosmia

grumpy · **Joined:** Jun 9, 2008 **Posts:** 5062

Never happen here I'm sure. 100% certain. On lenny's grave. Pinky promise.

Quote:

PCAOB sanctions two former Ernst & Young managers

By Dena Aubin

NEW YORK, Aug 1 (Reuters) - The main U.S. auditor watchdog group imposed the longest-ever ban against a partner of a Big Four accounting firm on Monday when it accused former Ernst & Young partner Peter O'Toole of faking audit documents.

The Public Company Accounting Oversight Board (PCAOB) banned O'Toole, 43, from practicing with any registered firm for at least three years and former Ernst & Young senior manager Darrin Estella for at least two years after finding they provided misleading information and altered work papers.

http://www.reuters.com/article/2011/08/ ... S320110801

grumpy · **Joined:** Jun 9, 2008 **Posts:** 5062

Here of course, the toothless CARB is investigating things. Across the pond, E&Ys auditing of Lehman attracted more focued interest.

Quote:

Cuomo sues Ernst & Young

By Colin Barr December 21, 2010: 11:31 AM ET

New York sued the giant accounting firm Ernst & Young Tuesday, saying it helped Lehman Brothers deceive investors about its true health for seven years.

The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run.

Seeks $150 million or so

"Our lawsuit seeks to recover the fees collected by Ernst & Young while it was supposed to be using accountable, honest measures to protect the public," said Attorney General Andrew Cuomo.

The suit centers on Ernst & Young's failure to confront Lehman about its practice of reducing the size of its balance sheet through routine securities repurchase agreements that it improperly accounted for as sales. That practice was known as Repo 105.

http://finance.fortune.cnn.com/2010/12/ ... nst-young/

2Pack · **Joined:** May 3, 2007 **Posts:** 10508

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. :nin

BlameGame · **Joined:** Jun 21, 2010 **Posts:** 2932

grumpy wrote:

The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run.

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.

the edge · **Joined:** Sep 25, 2007 **Posts:** 3732

jxbr wrote:

Ernst and Young has form here. They advised AIB in their purchase of Insurance Corporation of Ireland and did not discover the Ponzi scheme that was their London office.

For a history lesson, see http://www.highbeam.com/doc/1G1-14250539.html or http://en.wikipedia.org/wiki/Allied_Iri ... of_Ireland or http://web.archive.org/web/200602221025 ... reland.pdf.

This was the original bank bailout with AIB getting a free Get-Out-Of-Jail card for their greed, stupidity and arrogance. Of course, it did not do them any harm that they had loans outstanding to the current and former Taoisigh (Saint Garrett and Squire Hockey) at the time and wrote off both their loans.

Ernst and Young could not find an open sewer with a bloodhound and an obvious trail of shite starting at their feet.

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.

jmc · **Joined:** Feb 21, 2008 **Posts:** 2835

BlameGame wrote:

grumpy wrote:

The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run.

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.

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.

ragingbear · **Posted:** Sat Sep 17, 2011 11:23 am

jmc wrote:

I think we need to Arthur Andersen at least one of them pour encourager les autre.

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.

Scrambler · **Joined:** Jul 23, 2010 **Posts:** 401

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

namascama · **Posted:** Sun Sep 18, 2011 12:13 am

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.

You Can't Do This, we're Ernst and Young

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