Key facts
- Forvis Mazars and partner David Allen were fined a total of £610,537 by the Financial Reporting Council.
- The fines are for audit failings related to the 2021 statutory audit of Studio Retail Group.
- Studio Retail Group, a London Stock Exchange main market listed company, entered administration in February 2022.
- Forvis Mazars was fined £577,125, with a reduction for cooperation and early admissions.
- David Allen received a fine of £33,000, also reduced for cooperation and early admissions.
The Financial Reporting Council (FRC) has imposed a combined fine of £610,537 on accountancy firm Forvis Mazars and one of its senior partners, David Allen, due to significant audit failings. The investigation focused on the statutory audit of Studio Retail Group for the financial year ending 2021. Studio Retail Group, which was listed on the London Stock Exchange's main market at the time, subsequently entered administration in February 2022, resulting in substantial losses for its creditors and shareholders.
The FRC stated that Forvis Mazars received a fine of £577,125, a reduction from an initial £950,000, attributed to the firm's "exceptional cooperation" and early admission of wrongdoing to facilitate a settlement. David Allen, an auditor with over two decades of experience, was fined £55,000, reduced to £33,000 under similar terms. Justine Davidge, the FCA’s acting deputy executive counsel, described the issues as "serious breaches and failings" in the audit.
This action comes after Forvis and Mazars, two previously separate firms, merged in June 2024 to establish a global network valued at £3.9 billion ($4.7 billion). The merged entity, operating as Forvis Mazars, aims to leverage pooled profits and capital for global project funding, according to the firm's chief executive, James Gilbey.