FRC fines Forvis Mazars £577,125 over the Studio Retail Group audit

The Financial Reporting Council sanctioned Forvis Mazars and audit partner David Allen on July 2 over the audit of Studio Retail Group for the year ended 26 March 2021. The firm was fined £577,125, down from a £950,000 starting point after a 10% reduction for cooperation and 32.5% for admissions. Allen was fined £33,412, from a £55,000 starting point. Both admitted serious breaches of International Standards on Auditing covering expected credit losses, going concern and financial services income. Both received severe reprimands. Studio Retail Group entered administration on 24 February 2022, about eight months after the audit report was signed. Creditors and shareholders lost money. The FRC said the breaches did not cause the insolvency. Reported by Aninda Chakraborty at International Accounting Bulletin.