In this month’s audit updates, Grant Thornton given £650,000 audit fine at unnamed company, FRC bans majority of non-audit services and audit investment drives down KPMG partner pay
Grant Thornton has been fined £650,000 by the Financial Reporting Council (FRC), reduced for cooperation, over failures in the 2016 audit of an unnamed publicly listed company, which included inadequate sampling, a lack of professional scepticism and insufficient documentation.
The firm’s fine has been discounted to £422,500 for admissions and early disposal. A Grant Thornton audit engagement partner has been fined £20,000, reduced to £13,000.
The FRC said that the 2016 audit report signed on behalf of Grant Thornton did not satisfy certain relevant requirements, because of breaches relating to the audit work carried out on the company’s principal assets, and an area identified as a significant risk.
