# UK watchdog fines Deloitte over SIG audit
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Deloitte fined over audits of SIG plc by UK watchdog
Meta Description: Deloitte LLP fined over £900,000 for breaches in audits of building materials supplier SIG plc. FRC orders actions to prevent future breaches.
URL: https://financedigest.com/uk-watchdog-fines-deloitte-over-sig-audithtml

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By Tom Wilson

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

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

The FRC reprimanded Deloitte, ordering it to take [action prevent](https://www.financedigest.com/action-is-needed-to-prevent-payments-disruption-from-incoming-eu-funds-transfer-regulation-says-new-deutsche-bank-whitepaper.html "Action is needed to prevent payments disruption from incoming EU Funds Transfer Regulation, says new Deutsche Bank whitepaper") the breaches from happening again. It also fined [Deloitte audit engagement partner](https://www.financedigest.com/deloitte-strengthens-leadership-team-in-scotland-with-key-partner-promotions.html "Deloitte strengthens leadership team in Scotland with key partner promotions") Simon Manning 50,000 pounds, reduced to 36,250 pounds, after he also admitted the breaches.

Deloitte and Manning admitted two [breaches in relation to the audit](https://www.financedigest.com/pwc-hit-with-8-9-million-penalty-for-serious-breaches-on-babcock-audits.html "PwC hit with .9 million penalty for ‘serious breaches’ on Babcock audits") of supplier rebates – incentives paid to SIG by its suppliers – and cash, the FRC said.

They [failed to obtain and document](https://www.financedigest.com/facebook-knew-about-failed-to-police-abusive-content-globally-documents.html "Facebook knew about, failed to police, abusive content globally – documents") audit evidence over the testing of rebate terms and the testing of rebate debtor balances, it said. They also failed to “exercise sufficient professional scepticism” by not investigating signs that the balances of rebate debtors may have been overstated, the FRC added.

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 – relating to the audit of supplier rebates and cash – fell [short of the high standards expected](https://www.financedigest.com/analysis-china-property-financing-tweaks-fall-short-of-investor-expectations.html "Analysis-China property financing tweaks fall short of investor expectations") of us,” a Deloitte UK spokesperson said. We have learnt from the matters identified by the FRC and remain committed to audit [quality and its continuous improvement.”](https://www.financedigest.com/av-power-conditioners-market-will-gain-traction-over-2026-owing-to-improvements-in-audio-and-video-quality.html "AV Power Conditioners Market Will Gain Traction Over 2026 Owing To Improvements In Audio And Video Quality")

[Reuters could not reach](https://www.financedigest.com/sovereign-bond-yields-not-yet-reached-a-summit-reuters-poll.html "Sovereign bond yields not yet reached a summit – Reuters poll") Manning for comment.

($1 = 0.8258 pounds)

(Reporting by Tom Wilson; Editing by Danilo Masoni and Mark Potter)


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