Sanctions against Mazars
05 January 2022
Pursuant to the Auditor Regulatory Sanctions Procedure, the FRC’s Enforcement Committee (the Committee) has concluded that Mazars LLP (Mazars) failed to comply with the Regulatory Framework for Auditing in its audit of a local government authority’s 2019 financial statements.
The Committee issued a Notice of Proposed Sanction proposing a Regulatory Penalty of £314,000, adjusted by a discount of 20% for co-operation and admissions to £250,000. The Sanction has been accepted by Mazars.
In addition, the Committee has accepted written Undertakings proposed by Mazars. The Committee found failures in the reviewed audit, which it considered fell far short of the applicable standards and regulations and had the potential to undermine confidence in the standards in general of registered auditors.
The Committee acknowledges that Mazars provided co-operation, including at an early stage, and made certain admissions.
Further details of the Sanction are available on the FRC website and can be found here.
A copy of the ARSP is available on the FRC’s website and can be found here.