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Lisa Buckingham, editor of the Financial Mail on Sunday, has said a report which reveals the failings that resulted in the Lehman Brothers collapse has proved embarrassing for E&Y.
Indeed, with only four global auditing companies, the risk of collapse at E&Y would significantly impact upon the FTSE 100, but this can be avoided.
Ms Buckingham said stock market trading could be protected if the government supports the Financial Reporting Council to expand choice in the audit sector.
"Without trustworthy accounts investors cannot buy shares with confidence, companies will not trade effectively, staff will not sign up for long-term work and banks will not lend money," she asserted.
The four main auditors are E&Y, KPMG, Deloitte and PricewaterhouseCoopers.
Should E&Y collapse, 16 of the largest 100 companies would rush to join the client list of the other three.
E&Y says that it can identify stock market trading trends, identify implications and clarify industry issues.
Posted by Greg Secker
