Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Would an auditor have knowledge of the fact there was inadequate loan documentation for some loans? The chief executive of NAMA, the National Asset Management Agency, Mr. Brendan McDonagh, said in 2010:

[NAMA’s] our own detailed due diligence on a loan by loan examination has revealed a troubling picture of poor loan documentation, of assets not properly legally secured and of inadequate stress-testing of borrowers and loans - all born of a mindless scramble to funnel lending into one sector at considerable pace and of a reckless abandonment of basic principles of credit risk and prudent lending.

The Minister for Finance informed me in reply to a parliamentary question that, as a result of this poor loan documentation, NAMA paid €477 million less on the €32 billion it paid. Would an auditor be expected to pick up on some of these issues and report them?