The main objectives of the Financial Reporting Council’s (FRC) sanctions policy are to improve audit performance, protect the public from sub-standard work, maintain market confidence and uphold proper auditing standards. The policy emphasises that its purpose is not to punish, but to protect the public through deterrence.

This is illogical: if a firm’s failure to uphold standards leads to a finding of misconduct, and a multimillion pound fine is imposed by an enforcement tribunal of the FRC, can the firm really say ‘we have not been punished, but have helped to protect the public’?

Muc