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United Kingdom - Auditor fined over Worthington Nicholls

United Kingdom: The Financial Reporting Council has fined HWCA £225,000 over 37 allegations of misconduct relating to the audit of financial statements of Worthington Nicholls in 2005 and 2006.

HWCA, which later changed its name to Sixonethreeone (6131), entered a voluntary arrangement with creditors in 2010. Its former directors and successor firms, chiefly practices that are part of Haines Watts group, are liable for the fine plus £225,000 in costs.

Paul Newsham, the managing director of Haines Watts' Preston practice, who was lead auditor for Worthington Nicholls, was found to have conducted himself "significantly short of the standards reasonably to be expected" by a member of the ICAEW and was barred from practising as a chartered account for three years.

Paul George, head of conduct at the FRC, said: "It is essential that investors in smaller listed and Aim companies are able to rely upon the audited accounts of such companies in informing their investment decisions." In a statement, Haines Watts emphasised that: "The fine has been levied against Sixonethreeone Limited not the wider Haines Watts group."

Financial Times, Page: 22

- Extract from Financial Page - 16 September 2014
Updated 31 Oct 2014