Panel clears E&Y over Olympus auditing – far less to the report than meets the eye

The Wall Street Journal headline says Panel Clears Ernst & Young in Olympus Probe.

Cool update on the investigation, huh? An official panel looks at E&Y’s role and concludes their auditing was okay.  They have no legal liability.

I was quite interested in the article.  Then found out the details.

The panel was hired by E&Y.

Ernst & Young ShinNihon commissioned the four-member panel of lawyers and professors in December after a panel appointed by Olympus’s board raised questions over the process by which Ernst & Young in 2009 took over auditing Olympus from KPMG AZSA LLC. A separate outside panel commissioned by Olympus subsequently cleared both auditing firms.

So, not that much news here. Essentially E&Y cleared themselves.

Perhaps the report might describe the actual audit procedures and talk about the workpapers. If that is the case, the report would be valuable.  Otherwise, not so much.

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