Probe of Anglo auditor set to proceed

Despite the liquidation of IBRC, regulators are still planning to go ahead with an investigation into Ernst & Young’s behaviour as auditor of Anglo Irish Bank

The Chartered Accountants Regulatory Board is investigating Ernst & Young for its role while auditors to Anglo Irish Bank.

KPMG has since been appointed as the special liquidator to IBRC, the entity which took over the winding down of Anglo Irish Bank.

In response to a parliamentary question from Sinn Féin’s finance spokesperson Pearse Doherty, Finance Minister Michael Noonan confirmed that the liquidation of IBRC will not interfere with the investigation into Ernst & Young’s actions as Anglo Irish Bank’s auditor.

“I have been advised that the liquidation of IBRC will not affect disciplinary action being undertaken by the Chartered Accountants Regulatory Board, in accordance with the bylaws of the Institute of Chartered Accountants in Ireland, in relation to Ernst & Young in respect of their former role as auditors of Anglo Irish Bank,” Mr Noonan said.

A spokesperson for the board said that its investigation into Ernst & Young began in 2011 but that the investigation had been put on hold until the Director of Public Prosecutions finishes criminal investigations into Anglo Irish Bank.

“In Sept 2011, further to a report by the special investigator, John Purcell, formal complaints in relation to Ernst & Young were referred by the board’s complaints committee to its disciplinary panel,” the spokesperson said.

“The disciplinary hearings in respect of the formal complaints are being deferred at the request of the Office of the Director of Public Prosecutions to avoid prejudicing any criminal proceedings arising out of the circumstances giving rise to the board’s investigations into various matters in relation to Anglo Irish Bank.”

A date for when the investigation might resume and when findings can be expected remain unclear as the DPP is unwilling to comment on any ongoing cases.