The Financial Reporting Council has issued a final settlement decision notice against KPMG LLP and Anthony Sykes over the audit of N Brown Group plc, for FY22.
Both parties admitted serious breaches of international standards on auditing in their work on impairments of non-current assets.
After deductions for co-operation and early admissions KPMG was fined £710,937.50. It also received a severe reprimand
Skyes, who was the audit engagement partner, was fined £52,187.50 and also received a severe reprimand.
FRC’s Jamie Symington said: “In this case there were numerous failings in relation to the audit work on impairment, despite it having been identified as a significant risk. This case demonstrates that the audit of impairment requires a substantial level of diligence, forethought, and careful exercise of judgment.”
