BDO Fined £5.9 Million in UK for Failing to Prevent Ex-Manager’s “Dishonest” Conduct

Overview

The Financial Reporting Council (FRC) has fined BDO LLP £5.85 million (after settlement discount) for serious audit failings that allowed a senior manager to pursue a “dishonest course of conduct” undetected for several years.

Two former audit engagement partners were also sanctioned with fines and bans from audit work.

Read the official FRC announcement:
👉  https://www.frc.org.uk/news-and-events/news/2025/11/frc-imposes-sanctions-against-bdo-llp-and-two-audit-engagement-partners/

WHAT HAPPENED

• BDO and a pair of the firm’s former audit engagement partners have been hit with sanctions and hefty fines following admissions of misconduct in relation to an ex-manager who was found to have created fake documents, deleted records and copied e-signatures.
• The Financial Reporting Council (FRC) has imposed the sanctions against BDO, John Everingham and Kevin Cook.
• This was on the back of formal complaints being made against each of the respondents earlier this year surrounding their conduct in circumstances where Amanda Nightingale, a senior manager at the time, was able to pursue, undetected, what the FRC called a “dishonest course of conduct on numerous audits between 2015 and 2019”.
• This included creating false audit evidence, causing auditor’s reports to be issued without approval from the relevant audit engagement partner, and inserting electronic copies of the audit engagement partners’ signatures in auditor’s reports without their approval. 
• Nightingale was subsequently banned for 20 years and resigned from the firm a day before her hearing was set to take place. As such, it did not proceed.
• In total, there were 49 admitted instances of misconduct between 2015 and 2019.

SUMMARY

Between 2015 and 2019, senior manager Amanda Nightingale:

• Created false audit evidence
• Issued auditor’s reports without partner approval
• Inserted electronic copies of partners’ signatures into audit reports without consent
  (Source: BusinessCloud)  

The misconduct went undetected due to systemic failures in BDO’s internal controls and supervision, which the FRC described as “fundamentally flawed”.
BDO admitted that its systems from 2012 to 2019 were inadequate to prevent such misconduct.
(Source: AccountingWEB)

Sanctions Imposed

• BDO LLP:
• Fine: £6.5 million, reduced to £5.85 million after settlement
• Severe reprimand
• Must repay audit fees linked to affected audits
• Required to report to the FRC every six months for two years
• Additional £716,000 to cover FRC costs
  (Source: FRC Announcement)  
• John Everingham (former partner):
• Fine: £189,000
• Six-year ban from audit work
• Kevin Cook (former partner):
• Fine: £90,000
• Three-year ban from audit work
  (Source: AccountingWEB)

Regulator’s Statement

Jamie Symington, Deputy Executive Counsel at the FRC, said:

• “These failures gave rise to circumstances in which misconduct could occur and remain undetected. The misconduct was extremely serious and continued over a period of years.”
  (Source: AccountingWEB)  

Broader Implications

The case highlights:

• Audit quality risks when internal controls are weak
• The importance of partner oversight in preventing fraud
• Growing regulatory pressure on mid-tier firms to meet high audit standards

BDO has since conducted a forensic investigation and claims to have strengthened its systems and controls to prevent recurrence.

SOURCE

• https://www.frc.org.uk/news-and-events/news/2025/11/frc-imposes-sanctions-against-bdo-llp-and-two-audit-engagement-partners/
• https://www.accountingweb.co.uk/practice/general-practice/bdo-hit-with-ps585m-fine-after-extremely-serious-misconduct