Grant Thornton fined for taking the Patisserie!!!

Grant Thornton have been fined £2.3m for failures in its audits carried out between 2015 and 2017 on Patisserie Valerie.

Patisserie Valerie entered into administration and concerns over the company’s accounting function.

The Financial Reporting Council advised that Grant Thornton failed to ‘question information provided by management,’ and had ‘missed red flags’ after failing to follow audit rules ‘evidencing a serious lack of competence in conducting the audit work.’. The firm must now report annually, documenting its improvements.

This fine follows a previous £650,000 fine in 2016 after it was identified that a series of errors were in the audit of an unnamed listed company.

David Newstead, who carried out the audits, was also fine £150,000, later adjusted to £87,750 and banned from carrying our audits for three years.

This case highlights the potential risks for auditors if their clients subsequently enter into insolvency proceedings.

For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or should you or your company be facing financial difficulties and you need to chat, please telephone Charlotte Hutchinson on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices.  Our initial meetings are free and without obligation.  Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.

Because we are an independent insolvency practice, we keep our overheads low and have put systems in place to deal with simple liquidations at an affordable price of from £1,995 + VAT + Disbursements.  Our MVLs are from £995 + VAT + Disbursements.

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