“The investigation has been opened after the examination and assessment of Snoras’ 2010 report provided by Ernst & Young Baltic auditors. The report was prepared without obtaining sufficient proofs for reducing the audit risk to an acceptable low level. Moreover, the report shows other significant shortcomings of the bank’s 2010 audit,” the office said in a press release.
The pre-trial investigation is being conducted by Vilnius Board of the Special Investigation Service.
The Lithuanian Audit and Accounting Authority said late in June that the operations of Ernst & Young Baltic had deficiencies and stripped Ramūnas Bartašius, the company’s employee who was responsible for Snoras’ audit, of his title as an auditor. The authority established that Bartasius failed to take a skeptical approach during the audit and his work had significant deficiencies.
Meanwhile, Ernst & Young Baltic stated on 18 November that Snoras’ audit had been conducted in compliance with existing audit standards.
Ernst & Young Baltic audited the bank’s operations of 2009 and 2010. In line with the contract it also had to audit the activities of 2011.
Bankruptcy proceedings against Snoras were opened on 7 December. The bank is being wound up now.