The PCAOB (Public Company Accounting Oversight Board) barred a former partner and senior manager of Ernst & Young for providing misleading documents and altering workpapers related to an audit client, presumably in financial services.  Partner Peter C. O'Toole and senior manager Darrin Estella, based in E&Y's Boston office, were sanctioned for actions taken after they learned the PCAOB would be reviewing the 2010 audit workpapers of their client. 

O'Toole and Estella were charged with placing in the audit file a backdated document regarding the valuation of one of the audit client's investments.  O'Toole allegedly also gave permission to other audit personnel to alter other papers before the inspection.  PCAOB examiners were not notified of the changes.

O'Toole's attorney countered the charges, noting that the PCAOB apparently found no problems with the audit, and did not charge either man with trying to hide or lie about the work that was done on the audit.  Nevertheless, O'Toole and Estella were barred by the PCAOB from associating with public accounting firms for at least 3 years and at least 2 years, respectively.  Partner O'Toole also has to pay a $50K fine.  This is the longest ban ever imposed on a partner of a Big Four accounting firm.   [WS Journal, 8/2/11]