E&Y goes bankcrupt

[Ammar]

AOA
i have news that ey director declear that e y could be bank crupt
visit the site
www.accountancyage.com
news
regards
Ammar

[Evolution]

Could'nt find the article mate.

[Augustus]

in mu opinion a firm of professional can't be bankcrup but it can go into liquidation due to some other cause ... and as far as E&Y is concenrend i think ur information is wrong....the world's big 4 cant be bankcrupt easily and without a hot issue in news papers.
take care

[jbladeus]

Awww... too bad that it was only a false alarm!! <img src=icon_smile_sad.gif border=0 align=middle>

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

[Goodman]

I think EY is being sued by Equitable life for over £2bn in negligence claim. the case is scheduled for March next year. I also came to hear that EY chairman has written to Office of fair trading and prime minister's office to say that their PI cover is not adequate to cover £2BN claim.

so one can now form his/her own judgement as to what could happen.

[Pracs]

And then there were just 3 ... naah i hope not..

For an account of the story visit the following link

http//www.accountancyage.com/News/1115355

BTW, Following is an excpert from the news item

"But E&Y defended its role saying it had adhered to best accounting practice and would defend itself robustly against any claim made against it.

Head of E&Y's insurance practice Ron Holman, yesterday told The Times 'We were quite happy with their audit of the last accounts signed off on 31 December 1999.'So far the Financial Services Authority has ruled out a full inquiry into events at the insurer. Equitable Life's former finance director Chris Headdon was on Friday made chief executive."

Regards

[Goodman]

insiders say that Equitable's legal advice is that they have a strong case. and why would EY chairman start mourning about PI cover, I think they must have the legal advice that they should aim for out of court settlement.

EY has also not yet come out of JDS (Joint descipl. scheme) criticism
. As you know Govt is aiming to appoint a new authority for this type of cases, I think its called Accountancy Investigation and Desciplinary Board (AIDB). I had correspondence re AIDB, they are looking for panel members and they are paying £300 per day to panel members. If anybody is interested, its a good opportunity.

[Goodman]

forgot to mention that this might be the first case taken up by AIDB.