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Panel clears E&Y over Olympus auditing – far less to the report than meets the eye

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The Wall Street Journal headline says Panel Clears Ernst & Young in Olympus Probe.

Cool update on the investigation, huh? An official panel looks at E&Y’s role and concludes their auditing was okay.  They have no legal liability.

I was quite interested in the article.  Then found out the details.

The panel was hired by E&Y.

Ernst & Young ShinNihon commissioned the four-member panel of lawyers and professors in December after a panel appointed by Olympus’s board raised questions over the process by which Ernst & Young in 2009 took over auditing Olympus from KPMG AZSA LLC. A separate outside panel commissioned by Olympus subsequently cleared both auditing firms.

So, not that much news here. Essentially E&Y cleared themselves.

Perhaps the report might describe the actual audit procedures and talk about the workpapers. If that is the case, the report would be valuable.  Otherwise, not so much.

Written by Jim Ulvog

March 29, 2012, 8:55 am at 8:55 am

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