Jessica Sutherland acted in the recent regulatory proceedings concerning Ernst & Young’s 2017 audit of Stagecoach, including in relation to Stagecoach’s troubled acquisition (run jointly with Virgin Trains) of the rail franchise for the East Coast Mainline.
The FRC investigated Ernst & Young (EY), and former audit partner, Mark Harvey, and issued a Financial Decision Notice against both respondents, which included financial sanctions and severe reprimands for both parties.
EY was given a severe reprimand, and fined £3.5 million, discounted following mitigation, early admissions and early disposal to £2.2 million. EY was also required to report to the FRC for one year in respect of audit work performed in relation to onerous contract provisions.
Mark Harvey was fined £100,000 (likewise, discounted, as above, 30% to £70,000); and given a severe reprimand.
Jessica was sole counsel acting for the FRC.