uti.is 09 Mar 12: Icelandic bank auditors beware: Landsbanki’s auditors sued

Category: Newspaper & Media Reports

The Winding-Up Board of Landsbanki has sued the bank’s external auditor, PriceWaterhouseCooper, apparently for hundreds of millions of kronas in damages. The SIC report makes it abundantly clear that with so much wrong in the banks, their annual accounts were not much to rely on. And that raises serious questions regarding the auditors. Questions that the Landsbanki WUB has now formulated in a writ of 90 pages. It seems certain that other cases will follow. The question is if the Office of the Special Prosecutor will follow suit, bringing criminal charges against auditors. ...

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This case will no doubt be followed with great interest, not only in Iceland but also abroad. New York Attorney General is pursuing a case against Lehman’s auditors, Ernst & Young, for an alleged fraud involving a so-called Repo 105 transaction. Considering the evidence in the SIC report, the auditors for the two other Icelandic banks, Glitnir and Kaupthing, must already be pouring over their auditing and their relationship with the banks during the last years of the banks.

 

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