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The British Deloitte organization has been fined more than £900,000 by the Financial Reporting Council (FRC) for mistakes made in an audit of SIG, a major building materials company.
That report British media, incl Guard. The initial fine was higher, at 1.25 million pounds. Since Deloitte admitted wrongdoing, the FRC regulator reduced the number to nine hundred thousand.
The Deloitte audit partner responsible was also fined, ultimately £36,250. Fines related to the audit of SIG’s annual books for the 2015 and 2016 financial years.
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Deloitte has acknowledged to FRC that the audit evidence obtained from the SIG audit was insufficient to uncover errors surrounding supplier rebates and other amounts paid by SIG to suppliers. According to the FRC, Deloitte was also unprofessionally critical by not investigating indications that debtor balances may have been overstated by SIG.
According to the FRC, this was a violation of the “fundamental requirements for the role of independent auditor”, involving a material misstatement in the SIG accounts. Regulators have previously stressed that complex supplier agreements require “special attention from auditors”.
According to a Deloitte spokesperson, the organization is disappointed that the audit at SIG did not meet the “high standards expected of us” and the firm has learned from the concerns raised by the FRC.
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