Is fining a Big Four firm £10m effective as a deterrent to substandard work? Simply comparing the size and frequency of fines inflicted on these firms with their massive annual revenues misses the point.

The real punishment for being found guilty of gross audit failure is more lasting: it is the severe reputational shredding that goes with it and, ultimately, the loss of clients. There comes a point when clients are no longer prepared to stand by and see the credibility of their own financial reports compromised because they were audited by ‘that’ firm.

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