E&Y fined over audit failures

Ernst & Young has been fined by the ICAEW over auditing infringements going back nearly nine years. An institute investigation committee found that the Big Four firm issued unqualified audit reports for an unnamed company for the years ended 31 December 2000 and 31 December 2001. The committee said that the audits had not been conducted in accordance with Statement of Auditing Standard 400, Audit Evidence. In both cases, the firm 'did not obtain sufficient appropriate audit evidence on which to base its audit opinion in respect of market and client debtors and creditors'. The committee made an order that the firm be reprimanded, fined £40,000 and ordered to pay costs of £17,020. An E&Y spokeswoman said: 'We fully cooperated with and assisted the ICAEW throughout their investigation and accept the judgment, which relates to audits conducted a number of years ago.'
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