The final settlement decision identified problems with two audits conducted by Deloitte for SIG plc, a distributor of specialist building products. The issues related to the statutory audit of the financial statements of SIG plc for the financial years ended 31 December 2015 and 31 December 2016. Deloitte had been auditor of the listed firm since 2002 but stepped down in 2018.

Deloitte has been given a severe reprimand and fined £1.25m, reduced to £906,250 for admissions and early disposal, as the audits did not satisfy the relevant audit requirements. The firm has also been told to take specific action to prevent a recurrence of the contravention.

In addition, audit engagement partner, Simon Manning, who was responsible for signing off the audit, has been fined £50,000, discounted to £36,250, and given a severe reprimand. The FRC noted that Manning had a ‘clean disciplinary record spanning 29 years’. His fine will be paid by Deloitte.

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