Ex-KPMG partner Nicola Quayle fined AGAIN: ‘Serious flaws’ found in Eddie Stobart’s accounts
A hapless accountant labeled ‘Britain’s worst accountant’ has been fined again after an investigation into the books of transport company Eddie Stobart.
Nicola Quayle, who ran the Manchester office of ‘Big Four’ accounting firm KPMG for two years until December 2019, has been ordered to pay £45,500 by the Financial Reporting Council (FRC).
This was discounted from £70,000 due to ‘withdrawals and early removal’.
The regulator highlighted her seniority at the time of the audit and “past disciplinary punishment” as aggravating factors.
KPMG was fined £877,500, discounted from £1.35m, after admitting ‘serious deficiencies’ in its audit of Eddie Stobart’s 2017 accounts.
Punished: Nicola Quayle, who headed the Manchester office of ‘Big Four’ accounting firm KPMG, must pay £45,500
Quayle, 53, stopped auditing in 2020 and is no longer licensed to practice.
The fine comes on top of £155,000 in other fines handed out against it by the FRC, including a £110,000 fine for the audit of Conviviality, the owner of Wine Rack liquor store and discount chain Bargain Booze, which fell under administration in 2018.
She was also fined £45,000 by the watchdog in 2020 in connection with the audit of an unnamed company.
In addition, she was reprimanded and required to undergo training.
The fines were discounted to £80,850 and £29,250 respectively for prompt payment.
The FRC has also slapped rival accounting giant PwC with a fine of nearly £2 million, discounted from £3.5 million, over its audit of Eddie Stobart’s accounts for the 2018 financial year.
It again pointed to “numerous, serious and significant shortcomings” in PwC’s audit work.
Philip Storer, the partner who led the audit, was also fined £51,187, discounted from £90,000. Both firms apologized for their shortcomings following the FRC sanctions.
“We are committed to resolving and learning from the past, and regret that some areas of our work have fallen short,” said Cath Burnet, head of audit at KPMG UK.
PwC said: ‘Our work was not of the required standard and we apologise.’ Following Eddie Stobart’s audit in 2017, relations between KPMG and the company were severed and it was replaced by PwC the following year.
The haulier, whose lorries are a familiar sight on motorways, almost collapsed in 2019 after it was found to have overstated profits by £2 million last year.
Shares were suspended for six months in 2019 following a profit warning and the resignation of CEO Alex Laffey.