The U.K.’s accounting watchdog Wednesday ordered Ernst & Young to pay a reduced penalty of £2.2 million (U.S. $3 million) related to its audits of international transport company Stagecoach Group for the 2017 financial year. A former EY audit engagement partner was also fined.
The Financial Reporting Council (FRC) reduced an initial £3.5 million (U.S. $4.8 million) penalty in the case as a result of admissions and other mitigating factors. EY was also served a “severe reprimand” and will be required to report to the FRC for one year concerning “a number of audits (to be specified by the FRC), providing details of the audit work performed by EY in relation to onerous contract provisions,” according to the final decision notice.
