AuditorRecord

Financial Services Agency of Japan · Japan

Ernst & Young ShinNihon LLC: suspension by Financial Services Agency of Japan

Audit or matter: Toshiba Corporation (FY2009, FY2011 and FY2012)

Decision date22 December 2015
SanctionSuspension
Amount as statedThree month ban on accepting new engagements (1 January to 31 March 2016), a business improvement order, and a surcharge (administrative monetary penalty) of ¥2,111,000,000 ordered on 22 January 2016
StatusFinal
NetworkEY

What the regulator found

The FSA found that partners of Ernst & Young ShinNihon, through negligence of due care, attested to Toshiba financial statements containing material misstatements as if they contained none, and that the firm's operations were "significantly inappropriate." The FSA ordered the firm not to accept new engagements for three months and to improve its operations. Partners were suspended for one, three or six months, not named by the FSA. On 22 January 2016 the FSA ordered the firm to pay a surcharge of ¥2,111,000,000 for attesting Toshiba's financial statements for the years ended March 2012 and March 2013, saying the firm had admitted the facts and the amount.1,2

Status: Final1,2

Sources

  1. Financial Services Agency of Japan, Disciplinary action against an Audit firm and Certified Public Accountants (22 December 2015)
  2. Financial Services Agency of Japan, 新日本有限責任監査法人に対する課徴金納付命令の決定について (Surcharge payment order against Ernst & Young ShinNihon LLC) (22 January 2016)