‘Inapproriate Relationship’ Sinks Ernst & Young Audit — CFO.com

Despite perfectly clean financial reporting, a company might find itself forced to have its financial reports re-audited if the company and its auditor have violated the Securities and Exchange Commission’s auditor-independence rules.

That, apparently, is one takeaway from a series of events that saw Ernst & Young inform an audit client, Ventas, on July 3 that the Big Four firm wasn’t properly independent of Ventas because of an “inappropriate personal relationship” between an unnamed E&Y partner and Ventas’s chief accounting officer and controller, Robert Brehl….

via ‘Inapproriate Relationship’ Sinks Ernst & Young Audit — CFO.com