Auditors of the former Thomas Cook brand have been fined nearly £5 million after an investigation found they did not challenge bosses about claims the operator was still a going concern in the year before it collapsed.
Thomas Cook collapsed in September 2019, with many branches now under the Hays Travel brand
The Financial Reporting Council (FRC) fined auditors EY £6.5 million, discounted to £4.875 million for admissions of guilt, together with a £140,000 fine on EY partner Richard Wilson, reduced to £105,000.
The sanctions relate to audits of Thomas Cook Group for the financial years ending 30 September 2017 and 30 September 2018. Cook collapsed in September 2019.
Auditors must give a view as to whether a business is a viable going concern; the FRC ruled the 2018 audit was inadequate.
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