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E&y Japan Arm Launches Internal Probe Of Toshiba Audit


Ron Burgundy
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A logo of Toshiba Corp is seen next to an advertisement board for its Regza television in TokyoThe Japanese affiliate of Ernst & Young LLC has launched an in-house investigation into its audit of Toshiba Corp in the wake of the electronics maker's $1.2 billion accounting scandal, a person with knowledge of the matter said. Ernst & Young ShinNihon LLC has established a team of about 20 executives to investigate whether there were any problems with how it conducted its audits of Toshiba, the person said. Last month an external panel of lawyers and accountants hired to probe Toshiba's accounts found the company had inflated profits by 152 billion yen ($1.23 billion) over seven years by postponing the realization of losses and other schemes.




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