Audit updates: December 2019

In this month’s audit updates, Deloitte partner fined over Serco misconduct, PwC fails to strike out multimillion euro claim, audit switches at BHP, ITV and Staffline, FRC considers fixed fees as audit quality declines, MPs slam audit automatons, and ethics code leads to ISA changes

Investigations

FRC fines Deloitte audit partner £120k over misconduct

The Financial Reporting Council (FRC) has fined Deloitte audit partner Ross Howard £120,000 for misconduct in the audit of the financial statements of Serco Geografix Ltd for the year ended 31 December 2012.

As well as the fine, which has been discounted for settlement to £78,000, Howard has been severely reprimanded. The FRC investigation, conducted under the accountancy scheme, found he had failed to act in accordance with the fundamental principle of professional competence and due care.

The sanctions against Howard, who admitted the misconduct, follow an earlier FRC settlement agreement with Deloitte in relation to the 2011 and 2012 audits and Helen George, one of its audit partners (in relation solely to the 2011 audit).

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Investigations

FRC fines Deloitte audit partner £120k over misconduct

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