Source: accountancyage.com 16 October 2017
The Financial Reporting Council (FRC) has fined EY £1.8m over misconduct in relation to the audit of the financial statements of Tech Data Limited for financial year ending 31 January 2012.
Julian Gray, senior statutory auditor and audit engagement partner has also been fined £59,000 after he and the firm admitted that their conduct “fell significantly short” of the expected standards.
EY and Gray also admitted that they “failed to act in accordance with the ICAEW’s Fundamental Principle of Professional Competence and Due Care”, according to a statement from the FRC.
The audit misconduct related to a failure to obtain reasonable assurance that the financial statements were free from material misstatement, failure to obtain sufficient appropriate audit evidence and failure to exercise sufficient professional scepticism.