The U.K. Financial Reporting Council (FRC) fined audit firm Mazars 72,000 pounds (U.S. $92,000) for “wide-ranging failings” in its audit of an unnamed market traded company.
The FRC said in a press release Friday the firm’s lack of quality controls caused it to miss a material misstatement regarding the classification of convertible loan notes
Mazars did not identify the misstatement until after the audit, the FRC said. Other areas of concern included the way in which bonus payments were addressed by the firm.
An original penalty of £90,000 (U.S. $115,000) was discounted at a 20 percent rate because of Mazars’s cooperation and certain admissions, the FRC noted.
Mazars agreed to have the regulator’s audit quality review team monitor the firm’s compliance and report to the FRC’s supervision committee as needed.
Mazars did not reply to a request for comment.