Irish accountancy firm, Ernst & Young, has said it is satisfied there were no breaches or violations of policy or professional standards at its Dublin office.

The firm was reacting to the guilty plea by Mr Oliver Flanagan (34) who was a manager in Dublin, to destroying evidence in a US government investigation into corporate crime.

Mr Flanagan was one of two people Ernst & Young has admitted were involved in destroying evidence the US government was seeking in an investigation into a loan company that hired Ernst & Young as its accountants. Mr Flanagan has now left the firm.

The breach took place in 2000 at its San Francisco office and related to the audit of NextCard, the parent company of a federally chartered bank (NextBank) that sold credit cards over the internet. Mr Flanagan had transferred to the Dublin office and had worked there for 12 months.

"Once Ernst & Young became aware of the clear and serious violation of the firm's policy and professional standards, federal authorities were immediately informed and a forensic investigation was initiated internally," the statement said.

Mr Flanagan's lawyer, Mr Stanley Arkin, said that his client was helping the US government with its inquiries. Ernst & Young's US headquarters issued a statement in which it blamed Mr Flanagan and a former company partner, Mr Thomas Trauger.

Mr Flanagan pleaded guilty last month but his guilty plea was sealed until last Friday, when Mr Trauger was charged with destroying evidence.