World news – IN – The Financial Reporting Council Felt the Need to Give Deloitte UK a Fine For Bad Audit Quality Control – Going Concern


Did you know there is a giant wheel with the names of the six largest accounting firms in Britain—PwC, Deloitte, EY, KPMG, BDO, and Grant Thornton—in a hidden room at the Financial Reporting Council’s office? When the mood strikes them, FRC employees will gather round the big wheel and place bets as the wheel is spun to decide which of the six firms will be the next to pay a fine of an undetermined amount to the FRC Apparently the wheel was spun on Friday, and just as it looked like the dial was going to land on PwC, it clicked over to Deloitte at the last moment

OK, there’s no giant “wheel of fines” at the FRC, although it’s kinda funny to think about them having something so ludicrous However, Deloitte did get fined £500,000 today, which was reduced to £362,500 after it admitted to its bad auditing, and both the firm and an unnamed audit partner got a tongue-lashing

The FRC’s media release detailing the sanctions doesn’t reveal the name of the company that Deloitte was auditing and the audit partner’s name is redacted However, the Financial Times reported that the company is Johnston Press, which was one of the UK’s largest local news publishers until it collapsed into administration in 2018

The FRC found that Deloitte failed to properly explain why it allowed Johnston Press to reduce a large deficit in its defined benefit pension scheme from £90m to £27m The body said the deficit was a “significant area of audit risk” and that Deloitte’s quality control review processes had fallen short It ordered Deloitte to prepare a report explaining how its quality control team checks its audit work for listed companies

Johnston Press agreed a pre-pack administration deal in November 2018 with large debts, having long caused concerns about its future Administrators of Johnston Press sold the group’s assets to JPI Media Group, a company set up by the publisher’s lenders, while the Johnston Press Pension Plan, which had about 4,800 members and an estimated deficit of £305m, was taken over by the Pension Protection Fund

In its release, the FRC claims that Deloitte’s breaches “were not intentional, dishonest, deliberate or reckless” and said the unnamed audit partner “has a good compliance history and disciplinary record” FT reported that the audit partner left Deloitte in 2018

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885 As always, all tips are anonymous

Deloitte has spent a lot of time lately fending off legal claims from former employees But today, Big D threw in the towel and settled claims of wage discrimination at a Deloitte Services office in the Nashville area by agreeing to pay $275,000 in back wages and interest to 34 female employees According to the […]

[Updated on Nov 3 with statement from KPMG] Here’s some more news pertaining to the KPMG/PCAOB cheating scandal that I wasn’t expecting to post about today: KPMG has to pay a $13 million fine to the California Board of Accountancy for bending the audit inspection rules a handful of years ago AND for auditors cheating […]

Necessary cookies are absolutely essential for the website to function properly This category only includes cookies that ensures basic functionalities and security features of the website These cookies do not store any personal information

Deloitte, Audit, Financial Reporting Council, Accounting, Pension, Finance

World news – IN – The Financial Reporting Council Felt the Need to Give Deloitte UK a Fine For Bad Audit Quality Control – Going Concern
Related title:
The Financial Reporting Council Felt the Need to Give Deloitte UK a Fine For Bad Audit Quality Control
The big four audit firm has given the green light to talks with potential bidders for the division, Sky News learns
Deloitte fined over failures in Johnston Press audit
UK Financial Reporting Council fines Deloitte over audit failings
Deloitte fined £362000 by watchdog for pension scheme audit failure
Deloitte fined £500000 and mystery partner reprimanded for pension audit failings
Deloitte fined for pension scheme audit failures
Accounting giant Deloitte hit with £500000 watchdog fine over audit failures
Deloitte kicks off talks with bidders for UK restructuring unit
Deloitte fined by FRC for audit failures


Donnez votre avis et abonnez-vous pour plus d’infos

Vidéo du jour: