Auditors fined £25m as Financial Reporting Council gets

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Auditors fined £25m as Financial Reporting Council gets tough in wake of a string of bean counting scandals

By Daily Mail City & Finance Reporter

Published: | Updated:

The FRC has been keen to demonstrate a tougher stance towards auditors in the wake of a string of scandals

Bungling audit firms were hit with £25million in fines last year, an increase of almost half from 2018.

The Financial Reporting Council (FRC) has been keen to demonstrate a tougher stance in the wake of a string of scandals – the collapse of outsourcer Carillion and cafe chain Patisserie Valerie brought shame on the bean counting profession. 

The penalties dished out rose from £16.8million to £24.9million.

According to City law firm RPC, the FRC is trying to shake off criticism that it is too soft, after it was branded ‘useless’ by MPs.

Robert Morris, a partner at the law firm, said: ‘Fines are of the scale where they are now causing real financial pain.’

 

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