Financial Reporting Council · United Kingdom

Ernst & Young LLP: fine by Financial Reporting Council

Audit or matter: Thomas Cook Group plc (FY2017 and FY2018 audits)

What the regulator found

The FRC said EY admitted serious breaches relating to goodwill impairment in 2017 and 2018, going concern in 2018 and a risk to its independence in the 2018 audit. The FRC said it makes no assertion that balances were misstated or that the going concern basis was inappropriate, but that the audits failed to obtain reasonable assurance. It said the breaches were not suggested to be intentional, dishonest, deliberate or reckless. EY also received a published severe reprimand and orders including a commissioned review of selected goodwill impairment and going concern audits.¹

Status: Final¹

Sources

1. Financial Reporting Council, Sanctions against Ernst & Young LLP and Richard Wilson (10 April 2025)