Grant Thornton fined €3.3 m for misconduct in the audit of Vimto-maker Nichols

  • Grant Thornton fined €3.3 m for misconduct in the audit of Vimto-maker Nichols
    Independent.t. E.
    Accounting firm Grant Thornton was fined 3 million pounds (€3.3 m) for the guard industry for misconduct over his check Vimto-maker Nichols and the University of Salford.
    https://www.independent.ie/business/world/grant-thornton-fined-33m-for-misconduct-over-audits-of-vimtomaker-nichols-37263416.html
    https://www.independent.ie/business/article37263047.ece/69215/AUTOCROP/h342/ipanews_69bbf112-c6c3-4f4f-a6a2-a8dc0f6f2346_1

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Accounting firm Grant Thornton was fined 3 million pounds (€3.3 m) for the guard industry for misconduct over his check Vimto-maker Nichols and the University of Salford.

The Council financial reporting Council (frc), who said the misconduct associated with the appointment of former senior partner Eric Healy, to the audit committees of the companies, despite their work, at the same time on consultancy work, creating a “serious familiarity and self-interest threat.”

The FRC said it has fined Mr. Healey £200,000 – with a discount of up to £150,000 on settlement and expelled him from the Institute of chartered accountants for five years.

He also imposed fines on three senior auditors, Grant Thornton – Kevin Engel, David Barnes and Joanna kerns – after their admission of wrongdoing over audits.

The fines come as the auditors under heavy scrutiny after a series of scandals and amid concerns regarding conflicts of interest and lack of competition.

The FRC has called for an investigation into whether the “big four” accounting giants – Deloitte, ey, KPMG and PwC – should be broken up, their units, audit spun off.

The FRC said his investigation revealed misconduct in the financial statements Grant Thornton from Nichols and the University of salford for the years ended 2010, 2011, 2012 and 2013.

He said the employment of Mr. Healy as consultant and auditor led to “loss of independence” eight inspections in four years.

The FRC added: “it also revealed widespread and serious deficiencies in the control environment in the Manchester office of Grant Thornton for the period, as well as firm-deficiencies in policies and procedures relating to the care partners.”

His penalty against Grant Thornton was reduced after the initial settlement with a fine of 4 million pounds, while he also said that the reprimand of the firm.

Grant Thornton will pay a further £165,000 to cover the cost of the FRC’s Executive counsel.

He said that Mr. Engel will receive a severe reprimand and a fine of £75,000, while Mr. Barnes and Ms. Kearns will be fined £52,500 and £45,000 respectively. All fines were discounts for settlement.

A spokesman for Grant Thornton said: “while the focus of the investigation was not for technical competence in conducting these checks; a question of ethics and independence equally crucial to ensure the quality of our work and are sorry that we fell short of the standards expected from us for this reason.”

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