E&Y Baltic Stands by Audit on Now Defunct Snoras, BNS Says

Ernst & Young Baltic UAB appealed a ruling by Lithuanian authorities that auditing controls were inadequate when it reviewed the financial reports of Bankas Snoras AB, Baltic News Service reported.

A Vilnius court has agreed to hear the appeal of the June 20 decision by the Authority of Audit and Accounting, the newswire said. Separately, Lithuanian prosecutors this week said they would investigate whether Ernst & Young Baltic properly conducted the audit of Snoras’s 2010 financial statements, according to BNS.

Ernst & Young Baltic stands by its audit opinion given on Mar. 10, 2011, and will continue to use all resources to defend its work on the audit, according to BNS. The bank’s auditor, Ramunas Bartasius, whose auditor’s license was canceled by Lithuanian authorities in June, no longer works for Ernst & Young Baltic, BNS said.

Lithuania’s central bank took over Snoras, then the country’s third-biggest bank by deposits, in November 2011 after discovering assets reported on the lender’s balance sheet were missing. The bank was declared bankrupt.

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.