BDO’s Forged Audit Reports Highlight Oversight Issues at UK Firm

A steep regulatory fine against BDO’s UK business over a series of forged audit reports spanning several years reflects broader problems with the firm’s financial reporting safeguards.

The Financial Reporting Council hit BDO and two of its partners with more than £6 million ($7.9 million) in total fines Nov. 6. The industry watchdog faulted the firm for “serious failings” that allowed false audit evidence to be filed, which FRC said had undermined confidence in the audit profession.

The case follows an earlier enforcement action against former BDO senior manager Amanda Nightingale. Nightingale had created false audit evidence between 2015 ...