Auditors cleared of blame for bank collapse

The world’s largest accounting firms were yesterday cleared of blame for their audits of banks here as the country hurtled toward financial disaster in 2008.

A major review of the accountants’ actions, which cost €1.33m and took five years, yesterday said an accounting standard applied by external auditors was “found wanting”, but that the external audits themselves were generally of a high standard.

The Chartered Accountants Regulatory Board (CARB) said it had asked the tough questions and, for the first time, examined the audits its members had carried out on Irish banks, which had to be rescued at huge expense to taxpayers.