The FRC distributed £25 million in fines in the year to the end of March compared to just £8.9m during the same period in 2019, according to data from research firm Confirmation.

This increase was driven by a record £20.6m fine issued to Deloitte for defective audits of British software company Autonomy between 2009 and 2011.

However, despite the significant reprimand handed to the Big Four firm, total fines issued during the period still fell short of the £32m handed out in 2018-19, The Daily Telegraph reports. 

It comes as the UK’s business secretary Kwasi Kwarteng, seeks to shake up the industry in the wake of high-profile corporate collapses such as Carillion and BHS.

Last year, the FRC announced that Big Four accountancy firms KPMG, Deloitte, EY and PwC must separate their accounting and advisory arms to ensure audits are carried out independently.

In an attempt to ensure higher-quality work, the regulator has also urged accounting firms to increase audit fees and drop unprofitable clients. The FRC also will be replaced by a new watchdog in 2023 with stronger powers to clamp down on auditors and directors.

Kyle Gibbons, head of Confirmation’s European business, said: “The rise in the value of fines issued shows the FRC is willing to use financial sanctions to drive investment and improvements in audit.

“Fines are now of the scale where they can make a substantial impact on the profits of a firm, even those of the Big Four.

“A series of multi-million-pound fines have made the audit profession sit up and take notice and they are now investing in reform and technology as never before.”