Printed from http://www.electronista.com

Panel says Ernst & Young didn't fuel Olympus scandal

updated 04:10 pm EDT, Thu March 29, 2012

Legally absolved, but told should be more vigilant

An independent panel has determined that Ernst & Young was not accountable for any misrepresentation or legal lapses in how the firm audited Olympus's books in the face of the digital imaging company's $1.7 billion financial scandal. The panel had been commissioned by the accounting firm in December to take an independent look at how the accounting firm oversaw Olympus's financial reporting practices over several years while Olympus's executives were allegedly engaged in financial misconduct. A separate panel commissioned by Olympus had also cleared Ernst & Young, as well as KPMG, which had been the company's accountant until 2009.

In its findings, the four member panel concluded that "legal responsibility could not be confirmed" on the part of Ernst & Young. The panel added, however, that, although not legally responsible, Ernst & Young as well as other members of the accounting community needed to do a better job in identifying potential fraudulent corporate behavior.

Olympus's scandal took place over a period of 20 years. During that time, Olympus's executives have been accused of paying exorbitant fees to several financial advisers who had helped in several acquisitions made by the firm. The payments were inappropriately labelled as "good will," and were actually part of an effort to hide investment losses from shareholders.

The scandal first became public in December after then CEO Michael Woodford blew the whistle on the affair. Eventually, as details of the scandal began to be revealed, several Olympus executives, as well as some of its bankers, were arrested. [via The Wall Street Journal]



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News