Financial Reporting Council · United Kingdom
Ernst & Young LLP: fine by Financial Reporting Council
Audit or matter: London Capital & Finance plc (year to 30 April 2017 audit)
Decision date7 May 2024
SanctionFine
Amount as stated£7,000,000, reduced to £4,410,000 after discounts for mitigation and for admissions and early disposal
StatusFinal
NetworkEY
What the regulator found
The FRC said EY admitted breaches in risk assessment, professional scepticism regarding fraud and areas including loan debtors, bond creditors, going concern and related parties, with an inadequate understanding of the business and its internal controls. The FRC said none of the auditors was found to have acted dishonestly or recklessly. EY also received a severe reprimand and an order to report on measures taken.1
Status: Final1
Sources
- Financial Reporting Council, Sanctions against three audit firms over the audits of London Capital & Finance plc (7 May 2024)