Financial Reporting Council · United Kingdom
Grant Thornton UK LLP: fine by Financial Reporting Council
Audit or matter: Sports Direct International plc, now Frasers Group plc (2016 and 2018 audits)
Decision date18 July 2022
SanctionFine
Amount as stated£1,130,500 (2016 audit) and £193,375 (2018 audit), reduced from £1,700,000 and £350,000
StatusFinal
NetworkGrant Thornton
What the regulator found
The FRC said Grant Thornton admitted that in the 2016 audit it did not apply professional scepticism to management's position that a delivery company was not a related party, and that in the 2018 audit it failed to obtain sufficient appropriate evidence on inventory and website revenue. The FRC said Executive Counsel did not claim the breaches caused the financial statements to be materially misstated. Grant Thornton also received a severe reprimand.1
Status: Final1
Sources
- Financial Reporting Council, Sanctions against Grant Thornton UK LLP and Philip Westerman (18 July 2022)