Accounting giant Deloitte hit with £500,000 watchdog fine over audit failures

ACCOUNTING giant Deloitte was today rapped and fined £500,000 by a City watchdog for failings in a 2016 pension scheme and assets audit.

The Financial Reporting Council (FRC) imposed the penalty, discounted to £362,500 for admissions and early disposal, on the big four accountant but said the breaches were not: “intentional, dishonest, deliberate or reckless.”

A reprimand was also issued in connection with investigation against a former audit engagement partner, whose named has not been disclosed.

Claudia Mortimore, deputy executive counsel to the FRC, said: “The sanctions reflect the failures by the respondents to obtain sufficient appropriate audit evidence and to properly document work in significant areas of audit risk.”

A Deloitte spokeswoman said:  “We acknowledge and regret that aspects of our audit work for this entity did not comply with the relevant standards. 

"However as the FRC has recognised, these did not call into question the truth or fairness of the financial statements in question. Audit quality remains our priority and we continue to enhance our audit quality processes and to seek improvement across all of our work.”