EY and Partner Fined £1.2m over Made.com Accounting Failures
- The Financial Reporting Council fined the corporate finance firm £1.197 million and audit engagement partner Julie Carlyle £49,000 for failures in auditing online furniture retailer Made's 2021 finances.
- Watchdog officials cited a "failure to perform adequate procedures" regarding Made's financial resilience, noting auditors relied on management forecasts without testing whether the firm remained a going concern.
- Penrose Foss, executive counsel at the FRC, noted that "Absent such challenge and evidence, there is a heightened risk that financial statements present an inaccurate picture of a company's financial position." Auditors also failed to obtain sufficient evidence on deferred tax assets.
- Both fines were reduced by 30% due to early admission of the audit breaches, which occurred prior to Made's collapse into administration in November 2022.
- Hundreds of jobs were lost after Made collapsed, though retail group Next acquired the brand in a rescue deal and continues to operate the business today.
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EY and London managing partner fined over £1.3m for audit failure
Big Four giant EY and its London office managing partner have been hit with a nearly £1.3m fine by the financial watchdog for audit failings related to retailer Made.com in 2021. The Financial Reporting Council (FRC) said the sanction follows an investigation into Julie Carlyle, who manages the City office and a portfolio of many FTSE-listed retail clients, and the Big Four firm, over the handling of the statutory audit of now-collapsed retailer…
EY fined £1.2m over Made.com audit failures before retailer's collapse - London Business News
EY has been fined almost £1.2 million after Britain’s accounting watchdog found shortcomings in its audit of online furniture retailer Made.com before the company’s collapse, renewing scrutiny of audit quality… The post EY fined £1.2m over Made.com audit failures before retailer’s collapse appeared first on London Business News
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