EY and London Managing Partner Fined Over £1.3m for Audit Failures at Made.com
The Financial Reporting Council (FRC) has fined Big Four firm EY and its London managing partner, Julie Carlyle, a combined total of nearly £1.3 million for audit failings related to the now-collapsed retailer Made.com. The FRC imposed a £1.1 million fine on EY and a £49,000 fine on Carlyle, both reduced due to their early admission of failings and cooperation. The investigation found that the auditors failed to adequately assess the accuracy and reliability of Made.com's management financial forecasting models, did not gather sufficient evidence regarding the company's deferred tax assets, and ignored relevant new evidence that emerged between the audit work and the signing of the final report. Made.com, once listed on the London Stock Exchange, entered administration in 2022 after a drop in consumer demand post-Covid. The FRC's executive counsel emphasized that relying on management forecasts without proper challenge increases the risk of inaccurate financial statements.
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