British accounting watchdog the Financial Reporting Council has fined Deloitte and one of its senior auditors over failures in its looking into the accounts of building products manufacturer SIG.
The FRC has fined the accountancy firm £1.25m, which has been discounted to £906,250, for its failure to apply sufficient professional scepticism in auditing SIG’s accounts.
It also fined Deloitte audit engagement partner Simon Manning £50,000, discounted to £36,250, over failures in the audits of SIG’s 2015-16 financial results.
The FRC stated that Deloitte and Manning had failed to obtain sufficient audit evidence to verify the existence of supplier rebates and cheque payments that had been recorded in SIG’s accounts.
The watchdog highlighted that Manning had previously maintained a “clean disciplinary record” spanning 29 years as it severely reprimanded both Deloitte and the audit engagement partner and ordered them to pay costs of £120,481.
Reporting by Iain Gilbert at Sharecast.com
