UK watchdog fines Deloitte over SIG audit | Daily News Byte

LONDON, Dec 22 (Reuters) – Britain’s accounting watchdog said on Thursday it had fined Deloitte LLP more than 900,000 pounds ($1.09 million) over its audit of building materials supplier SIG plc ( SHI.L ) for the 2015 and 2016 financial years. .

The Financial Reporting Council (FRC) said it had imposed a 1.25 million pound fine on Deloitte LLP, which was reduced to 906,250 pounds after it admitted breaches in its work on SIG’s financial statements.

The FRC reprimanded Deloitte, ordering it to take steps to prevent repeat violations. It also fined Simon Manning, Deloitte’s audit engagement partner, £50,000, which was reduced to £36,250, after he also admitted the breach.

Deloitte & Manning admitted two breaches in relation to an audit of supplier rebates – incentives paid to SIG by its suppliers – and cash, the FRC said.

They failed to obtain and document audit evidence on testing rebate terms and testing rebate debtor balances, it said. The FRC added that they also failed to “exercise sufficient professional skepticism” by not investigating indications that rebate debtors’ balances may have been overstated.

Both Deloitte and Manning cooperated with the FRC’s investigation, it said.

“We are disappointed that our work on the FY15 and FY16 SIG plc audits – related to audits of supplier rebates and cash – fell short of the high standards we expected,” a Deloitte UK spokesperson said. “We have learned from the matters identified by the FRC and are committed to audit quality and its continuous improvement.”

Reuters could not reach Manning for comment.

($1 = 0.8258 pounds)

Reported by Tom Wilson; Editing by Danilo Masoni and Mark Potter

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