News agency Bloomberg said on Monday that the UK and US authorities have settled a jurisdictional dispute over the alleged role of British auditors in the collapse of investment bank Lehman Brothers, paving the way for interrogation by US investigators for improper accounting practices.
Bloomberg said that an announcement to this effect will possibly take place on Monday, under which the American Public Company Accounting Oversight Board (PCAOB) will be given access to the books of accounts. However, the news could not be independently verified from PCAOB.
Since Lehman’s collapse in 2008, US investigators have been disallowed to question British auditors on jurisdictional issues.
It may be recollected the global audit firm Ernst & Young is facing investigation in the US for their alleged role in Lehman’s collapse.
The PCAOB was formed after the promulgation of the Sarbanes-Oxley Act in 2002, with the mandate to oversee and regulate public auditors after the Enron and WorldCom scandals broke. The board inspects and disciplines auditors of brokerages and public companies.