The UK’s fifth largest audit firm, BDO, hit with multi-million pound fine after admission of misconduct by two former audit engagement partners over lack of supervision of auditor linked to FRC misconduct decision last year
The Financial Reporting Council (FRC) has imposed sanctions under the Accountancy Scheme against BDO and two of its former audit engagement partners, John Everingham and Kevin Cook, who were the responsible individuals overseeing the work of Amanda Nightingale, the BDO auditor who was fined last year for serious misconduct.
BDO was issued with a severe reprimand and fined £6.5m, reduced to £5.85m after a 10% settlement discount, and the mid-tier firm also has to be pay £716,000 in FRC costs.
Everingham was fined £210,000, which included a 5% premium to reflect his non-cooperation with FRC investigators. However, in the final analysis this was reduced to £189,000 after application of a 10% settlement discount. Everingham was banned from doing any audit work for six years.
