From Yahoo Finance: 2025-04-15 10:22:00

The UK’s Financial Reporting Council (FRC) sanctioned EY and audit partner Christopher Voogd for breaching audit rules in Stirling Water Seafield Finance’s 2019 audit. EY exceeded the ten-year limit for auditing a Public Interest Entity (PIE) without a public tender, resulting in fines and non-financial penalties.

EY and Voogd failed to follow proper procedures for continuing the audit engagement, violating International Standards for Auditing (ISAs). EY admitted to the breaches and was fined £325,000, with non-financial penalties. Voogd was fined £32,500. FRC stressed the importance of mandatory firm rotation requirements for auditors.

FRC’s deputy executive counsel highlighted significant failings in EY’s adherence to mandatory firm rotation rules, impacting trust in corporate reporting. EY’s internal policies were found inadequate in ensuring independence and compliance with engagement duration conditions. The firm has taken steps to prevent future breaches and will work with the FRC.

This incident follows a recent fine imposed on EY by the FRC for audit failures related to Thomas Cook. EY’s internal policies were found inadequate in ensuring the firm’s independence and compliance with engagement duration conditions. The firm has taken steps to prevent future breaches and will work with the FRC to implement further necessary actions.

Read more: FRC fines EY and audit partner for breaching audit rotation rules