Courts / Wicklow / Report

Directors' loans assessed as low risk, auditor tells Sean FitzPatrick trial

Summary

During the Sean FitzPatrick trial, former Anglo Irish Bank auditor Vincent Bergin testified that auditors had no history of problems with loans to the bank's directors. Bergin, a partner at EY, led the audit from 2005 to 2008 and explained that the risk assessment of directors' loans was qualitative, based on routine transaction appearance and no past issues. He noted that the aggregate loan balance, as known to auditors, would not affect the balance sheet. Bergin highlighted the importance of the letter of representation, which ensures that directors and auditors share the same understanding of financial statements; without it, auditors would not issue an audit opinion. FitzPatrick, 68, denies all 27 charges, including 22 for misleading auditors and five for furnishing false information between 2002 and 2007. The trial proceeds before Judge John Aylmer and a jury.

Who, what, where, when and why

What: Report matter: Directors' loans assessed as low risk, auditor tells Sean FitzPatrick trial. Charges or matters: 27 offences under the 1990 Companies Act. Procedural stage: trial

When:

• 2002 to 2007 Other
• 2005 to 2008 Other
• 2017-02-21 Publication

Case subjects

Places mentioned

Topics

Stage Trial

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Read the original CNI report