In a March 23rd letter from Ernst & Young addressed to an audit committee at another one of its clients, the accounting firm vigorously defends its reputation. Luckily, Contrarian Pundit obtained a copy and posted it for all the world to see.
And on top of it defending itself, Ernst & Young truly believes nothing was wrong with Lehman Brothers or its auditing practices. Some of the gems from the letter include the following comments:
- Lehman’s last audit was in November of 2007 and everything was in GAAP compliance.
- The financial crisis ruined Lehman, not Lehman.
- Lehman sold off good assets and that’s OK!
- Blame the account rules.
- There was a footnote about the $1 trillion in assets that were off the balance sheet.
Below, the PDF of the letter sent out by Ernst & Young.