The accountant in charge of the audit at Anglo Irish Bank between 2002 and 2004, has said it would have been significant for the audit if arrangements had been put in place at the end of Anglo's financial year to refinance Sean FitzPatrick's loans from the bank.

Mr FitzPatrick has pleaded not guilty to misleading Anglo's auditors and furnishing false information about loans to him and to people connected with him between 2002 and 2007.

Kieran Kelly from auditing firm EY said he was not aware at the time, of a facility letter from Irish Nationwide Building Society in September 2002, outlining details of a loan to Mr FitzPatrick to refinance his Anglo loans.

He told the jury that it would probably not have been of great significance if loans had been taken out by Mr FitzPatrick during the financial year up to 30 September 2002 and the auditors had not been told about them. 

He said this in itself would not have had that big an impact on the audit.

He said directors may take out loans at different points of the year and repay them because of personal circumstances.

However, Mr Kelly said it would have been significant to the audits in 2002, 2003 and 2004, if there were arrangements put in place at each year end to have those loans refinanced.

He said the auditors would have wanted to understand from Anglo the precise nature of the refinancing and would have had to address all the accounting, disclosure and reporting obligations in relation to their duties.

He said if he had judged what had happened to be unusual he would have had an obligation to make reports to the board and to the audit committee.

Earlier, he said it was difficult for him to say how the matter would have been dealt with in Anglo's accounts, without having had the opportunity to get a full explanation and to do further work.

Mr Kelly said letters of representation to the auditors from directors of a company were very important. 

They were required under auditing standards and confirmed important aspects of the audit and the provision of information.

Prosecuting counsel Dominic McGinn said it would be for the jury to decide if the loans had been refinanced and whether any refinancing arrangements should have been part of the letters of representation submitted by Anglo to EY.

Mr Kelly also said it took a long time for his statement to the Office of the Director of Corporate Enforcement to be finalised.

He said colleagues from EY were involved in it as well EY's legal advisers A&L Goodbody, and officials and gardaí from the ODCE. 

He said he took very seriously, a declaration he gave at the beginning of the statement he made in January 2012.

The declaration stated that the statement was true and that he understood he was liable to prosecution if he gave evidence in it that he knew to be false.

He said he had initialled every page of the statement and signed it at the end as being correct.

He said he believed the contents of this statement and a short additional statement he made in January 2016 were true and accurate.

His cross examination by lawyers for Sean FitzPatrick, who allege he and another EY auditor were coached and essentially told what to put in their statements, is due to begin tomorrow morning.