The FRC’s enforcement committee found failures in Grant Thornton’s audit of the pension fund for the year ended 31 March 2021, which it considered represented a significant departure from the standards expected of a Registered Auditor and had the potential to affect the public, employees, pensioners or creditors. These included two uncorrected material errors in the audited financial statements and insufficient audit evidence for the accuracy of investment valuations.

Although Grant Thornton cooperated with the investigation, provided remedial action, and demonstrated contrition, the FRC considered the failures a serious departure from expected standards. The original £50,000 penalty was reduced by 20% to £40,000 for co-operation and other mitigating factors.

The sanction has been accepted by Grant Thornton.

A spokesperson for Grant Thornton told Scottish Financial News said: “We note the findings of the regulator’s investigation, with which we have cooperated throughout, and regret the errors identified.

“As a leading provider of audit and related assurance services to the public sector, we remain committed to high-quality work and have taken steps to further improve this.”

The FRC acknowledged that Grant Thornton UK LLP provided co-operation, including at an early stage, took appropriate remedial steps promptly once the failing was identified and demonstrated contrition. There was also no evidence to support financial gain or benefit from the failure.