Big Four firm EY has been fined £251,305 for breaking the non audit services cap for Russian mining group Evraz plc, in contravention of ethical standard for auditors
The Evraz annual report for FY2021 showed that global non-audit fees were 51.5% of the audit fee in 2021 compared to 19% in 2020 primarily due to a coal business demerger. However, at the UK EY entity level, non-audit fees were 97% of the audit fee as a result of the demerger.
Evraz is a multinational mining group, headquartered in Moscow but incorporated in London and listed as a FTSE 100 company. Its shares have been suspended from trading on the London Stock Exchange since March 2022 when Russian sanctions were introduced after the outbreak of the war in Ukraine.
EY UK audited Evraz since it was listed in the UK in 2011 until its resignation as auditor in November 2022.
