From FINANCIAL TIMES:
Claims about Ernst & Young’s part in the collapse of Lehman Brothers look set to open a wider debate on what has until now been one of the least dissected aspects of the financial crisis – the role played by auditors…
The report’s allegations centre on claims that E&Y took no steps to question or challenge the non-disclosure by Lehman executives of their use of $50bn of temporary, off-balance sheet transactions, known as Repo 105 that flattered the bank’s financial position…
Some accounting experts believe the Lehman report has shown the need to refine the ideology behind financial reporting so that manoeuvres such as off-balance sheet transactions are made clear to investors…
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