The Hong Kong arm of Ernst & Young has reached a settlement for an undisclosed sum with Borrelli Walsh, the liquidators of Akai, after it confirmed certain audit documents could not be relied on. The collapse of electronics company Akai was Hong Kong's biggest bankruptcy, of which E&Y was auditor prior to its downfall. Last week, liquidators made allegations that certain documents had been tampered with and alterations made, sparking an internal investigation by the Big Four firm. In light of the investigation, the firm said it 'has made clear that certain documents produced for the audits in 1998 and 1999 could no longer be relied on due to the action of the audit manager in early 2000'. The unnamed individual, who is now a partner, has been suspended from Ernst & Young pending the completion of the internal disciplinary process. It has also been suggested that another employee of E&Y in Hong Kong could have been involved, and is being looked into. Jim Hassett, co-area managing partner for the Far East area said: 'This settlement means that we can now put this old matter behind us. This eliminates any uncertainty or future burden on our business, allowing us to focus all our efforts on our people and our clients.'