Lithuanian authorities canceled an auditors license for an Ernst & Young Baltic UAB employee and told the company to improve controls after reviewing his financial reports on Bankas Snoras AB issued before the lender’s bankruptcy.
The bank’s auditor, Ramunas Bartasius, lacked “skepticism” and failed to gather sufficient evidence to mitigate auditing risks to “acceptable low levels,” said the Authority of Audit and Accounting in Vilnius in a statement on its website today. Ernst & Young Baltic must improve auditing controls by Dec. 15, it said.
Lithuania’s central bank took over Snoras, then the country’s third-biggest bank by deposits, in November after discovering assets reported on the lender’s balance sheet were missing. The bank was declared bankrupt.
Ernst & Young Baltic said it rejected the authority’s decision because the regulator reviewed the auditor’s report after receiving additional information such as legal investigation into suspicion of criminal activity at the bank by its shareholders, according to an e-mailed statement from Ernst & Young today.