E&Y gets Farepak audit complaint

Ernst & Young (E&Y) faces disciplinary action over its audit of the parent company of Farepak, the savings firm that collapsed shortly before Christmas 2006. The Financial Reporting Council said it has filed a disciplinary formal complaint against the big four auditor and one of its former staff for signing off Farepak’s 2005 accounts and declaring that the firm was able to continue as a going concern. The complaint will be heard by a tribunal next year.