June 27 (Bloomberg) -- Ernst & Young Baltic UAB and the Lithuanian central bank agreed to end their auditing contract after an employee at the company lost a permit because of Bankas Snoras AB’s bankruptcy, the Baltic News Service reported today.
The central bank and Ernst & Young ended the contract to prevent “reputation risk,” the BNS cited Rima Kaziuliene, an adviser to the central bank governor, as saying. Lithuanian authorities canceled an auditor license for an Ernst & Young Baltic employee on June 20 and told the company to improve controls after reviewing his financial reports on Bankas Snoras issued before the lender’s bankruptcy.
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