Ventas Fires EY as Auditor Over Independence Violation

And by “independence violation” we mean “they were probably banging”

And sent out a press release, no less:

Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today announced that the Company has dismissed Ernst & Young (“E&Y”) as its public accounting firm, effective July 5, 2014, due to E&Y’s determination that it was not independent solely as a result of an inappropriate personal relationship between an E&Y partner and Ventas’s former Chief Accounting Officer and Controller. Ventas also announced that, following such dismissal, its Audit Committee has engaged KPMG LLP (“KPMG”) as the Company's independent public accounting firm.

E&Y has advised the Company that, solely due to the inappropriate personal relationship, it determined that it was not independent of the Company during the periods in question. As a result of such determination, E&Y stated that it was obligated under applicable law and professional standards to withdraw (and it has withdrawn) its audit reports on the Company’s financial statements for the years ended December 31, 2012 and 2013, and its review of the Company’s results for the quarter ended March 31, 2014. E&Y’s decision to withdraw such audit reports and review was made exclusively due to the personal relationship in question, and not for any reason related to Ventas’s financial statements, its accounting practices, the integrity of Ventas’s controls or for any other reason.

The crony in question, one Robert J. Brehl, has "separated himself" from his duties as Chief Accounting Officer and Controller.

“Ventas stands for integrity, reliability and transparency with investors, lenders, employees and other stakeholders,” stated Ventas Chairman and Chief Executive Officer Debra A. Cafaro. “When we learned of this isolated situation, we investigated the facts immediately, notified E&Y promptly and took swift and decisive action.

Ventas stands by its 2012 and 2013 financial statements but because of this situation with Rob and whoever he "knew" over at EY, they need to be reaudited. WAY TO GO, GUYS.

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

EY Thinks It Is the Harvard of the Big 4

Big 4 CEOs comparing their firm’s acceptance rates to those of an Ivy League school is soooo 2012. And soooo 2015. Deloitte Global CEO Punit Renjen used to do it all the time, proclaiming Deloitte as the Harvard of the Big 4. But the whole “we’re more exclusive than Harvard” boasting had quieted down some […]

Layoff Watch ’19: Cuts Coming at EY U.K.

The 2019 financial year at the Queen’s Ernst & Young would probably be considered below expectations. Revenue increased but only by 1.5% to £2.45 billion for the year ended June 30, while profits went up from £472 million in 2018 to £477 million this year. EY’s transaction advisory services and tax businesses both had a […]