BDO and ex-partners face heavy fines for audit misconduct and fraudulent evidence
The Financial Reporting Council (FRC) has imposed significant penalties on BDO and two of its former partners for misconduct in several audits. Amanda Nightingale, a senior manager, received a 20-year ban for her role, while John Everingham and Kevin Cook faced fines and bans for their failure to supervise.
Nightingale's actions, spanning from 2015 to 2019, involved creating false audit evidence and issuing reports without proper approval. Despite being handed a 20-year ban, she was not fined due to mitigating factors such as extra strain from a seriously ill family member and remorse for her actions.
Everingham and Cook failed to adequately supervise Nightingale's work. Everingham was fined £189,000 and banned from audit work for six years, while Cook was fined £90,000 and banned for three years. BDO, as a firm, was fined £5.85 million, including £716,000 to cover the FRC's costs. The FRC found BDO's response to internal reports and its systems and controls to be inadequate.
The FRC's actions aim to maintain high standards in the accounting profession. BDO and the individuals involved have accepted the penalties, demonstrating a commitment to improving their systems and controls to prevent such misconduct in the future.
