The UK Accountancy and Actuarial Discipline Board
(AADB) has started an investigation into Ernst & Young’s
conduct as auditors of Lehman Brothers operations in Europe.

The board has also launched
a separate investigation into PwC’s role in reporting
disclosures on client assets of JP Morgan
Securities.

The decision to investigate the two Big Four firms
comes after consultations with the Institute of Chartered
Accountants of England and Wales.

AADB is an
independent, investigative and disciplinary body for accountants
and actuaries in the UK.