A report on the scandal of Olympus in Japan has raised concerns over the work carried out by two Big Four auditors. The Third Party Committee report found that a clean audit opinion from KPMG was 'questionable' while Ernst & Young's lack of knowledge of past events was not 'appropriate'. In response, E&Y ShinNihon, the network's Japanese firm, set up an independent investigation. According to the report, KPMG had 'blindly' relied upon an independent expert's report after it questioned accounting practices in the company's 2009 accounts. The review also described as 'questionable' the handover process between KPMG and Ernst & Young, which took over the audit in 2009.
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