Overview

• The Financial Reporting Council (FRC) fined EY £4.9 million and former audit partner Richard Wilson £105,000 after they admitted to audit failings.
• EY's audits of Thomas Cook in 2017 and 2018 were criticized for insufficient scrutiny of goodwill valuations and the company's going concern status.
• The FRC highlighted EY's overreliance on Thomas Cook's internal forecasts and failure to address discrepancies with external data.
• Concerns were raised about potential conflicts of interest due to close relationships between EY personnel and Thomas Cook's management.
• EY has acknowledged its shortcomings, committing to enhanced training, procedures, and methodologies to prevent future lapses.