- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-08-08T17:06:00
The Financial Reporting Council (FRC) ordered Ernst & Young UK (EY) to pay 296,000 pounds (U.S. $376,000) over the firm’s 2021 audit of Russia mining group Evraz.
EY conducted a statutory audit for the year ending Dec. 31, 2021, that breached the FRC’s Revised Ethical Standard 2019, the agency announced in a press release Wednesday. EY will pay about £121,00 (U.S. $154,000) in disgorgement, £130,000 (U.S. $165,000) in civil penalties, and £45,000 (U.S. $57,000) in legal costs, according the final notice.
EY breached FRC standards by exceeding the 70 percent cap on fees for non-audit services, but the agency acknowledged the breach was not intentional or dishonest. This along with admissions and early settlement earned the firm a 35 percent discount.
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Within two weeks of gaining power, the U.K.’s newly elected Labor government has confirmed its intention to beef up the audit regulator and strengthen corporate governance.
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Brazilian energy and sugar company Raizen Energia SA and its Swiss trading subsidiary will pay $850,000 in fines to settle charges that they engaged in illegal noncompetitive transactions.
