Financial Reporting Council Sanctions Mazars for Audit Failures Related to Audit of Market Traded Company

On August 18, 2023, the Financial Reporting Council announced the imposition of sanctions by its Enforcement Committee against Mazars LLP for a failure to comply with the Regulatory Framework for Auditing in its audit of a Market Traded Company. The Committee found wide-ranging failures in the audit, most significant of which was the non-identification of a material misstatement related to the classification of Convertible Loan Notes, demonstrating a lack of quality control. The Committee proposed and Mazars accepted a Regulatory Penalty of £90,000, reduced by 20% to account for Mazars’ co-operation and admissions, in addition to certain Undertakings.

A copy of the announcement can be found here.