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February 8, 2023

FRC Head Tells Firms to Stop Bitching About Audit Fines and Just Git Gud, Scrubs

FT reports that Financial Reporting Council CEO Sir Jon Thompson has a strong message to firms upset about getting hit with fines for bad auditing: git gud.

Accountants should stop complaining about extra scrutiny and fines for audit failures and improve the quality of their work, said the head of the sector’s UK watchdog, which imposed record financial sanctions on the industry last year.

Sir Jon Thompson, the watchdog’s chief executive, said he had no sympathy with them over the level of fines imposed. “It’s no good complaining about the fines,” he said in an interview with the Financial Times. “The solution is entirely in [the audit firms’] hands. Do a good audit and you don’t get in trouble with us.”

Here, you dropped this 👑

As mentioned by FT, the FRC handed down record fines this past fiscal year: £46.5 million (US$56.6 million) before settlement discounts, up from £16.7 million the year before. More than half of these were levied against KPMG alone. Last July KPMG got eviscerated by the FRC in its 2020/21 inspection report with its bank audits being of particular concern to UK audit watchdogs.

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