By Jack Mendel
A financial regulator has slapped a fine on Deloitte and an auditor over breaches in a financial statement.
Deloitte LLP and Simon Manning, Audit Engagement Partner, were reprimanded over the statements for 2015 and 2016.
Executive Counsel of the Financial Reporting Council told Deloitte to pay £1.25m. This it said was brought down to £906,250 for admissions and early disposal.
It was also told to publish a statement of severe reprimand, declaring that audit reports in 2015 and 201 did not satisfy requirements.
Manning has been fined £50,000, brought down to £26,250, and must also publish a statement.
The FRC said on supplier rebates, which are incentives paid by suppliers to encourage a firm to purchase its goods, both failed to get hold of the right audit evidence.
They both admitted breaches and the FRC ruled that the “extent and timing of their admissions” led to a 27.5 per cent discount on the sanctions.
Jamie Symington, Deputy Executive Counsel, said: “These breaches concerned two discrete areas of the audit of a particular subsidiary of SIG plc. They involved contraventions of requirements which are fundamental to the role of the independent auditor, and were associated with material misstatements in SIG plc’s accounts which had to be corrected. The breaches in respect of supplier rebates were made all the more serious by the fact that the FRC had highlighted these complex supplier arrangements as requiring particular attention from auditors.”
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