Because of the findings supplied by the company, many Snoras Bank creditors, including private individuals and corporate entities, entrusted the bank with their funds and investments. The bank actively publicised and advertised wrongful audit conclusions and the fact that Snoras Bank was named the best bank of 2010, while UAB Ernst & Young Baltic was deemed a trustworthy audit company.
The Creditors’ Committee and the Bank of Lithuania were asked to provide their opinion within 30 days on further actions of the Snoras bankruptcy administrator related to proceeding with claims.
As reported, the extended panel of judges of the Supreme Administrative Court of Lithuania ruled that Ernst & Young Baltic failed to follow professional scepticism while deficiencies of audit reports were pronounced significant. Therefore, the court found the sanctions adopted by the Authority of Audit and Accounting justified and lawful.
The Authority of Audit and Accounting had previously instructed Ernst & Young Baltic to eliminate deficiencies related to the audit of AB Snoras Bank 2010 financial report, whereas the licence of one of the auditor’s employees was revoked.