The Financial Reporting Council (FRC) also issued a £40,056.25 fine to the firm’s audit engagement partner John Charlton.

The fines were initially £2m and £65,000 respectively. However, they were reduced after both admitted ‘breaches of relevant requirements relating to the audit work of the company’s impairment testing of goodwill’ early into the investigation.

The other sanctions imposed on the Big Four firm and Charlton included a requirement to report to the FRC on the impact of remedial actions taken by Deloitte since 2016 on audits of goodwill, a severe reprimand, and a declaration that the audit report did not satisfy the relevant requirements.