Accountancy giant Grant Thornton has been slapped with a £2.3m fine over failures in its audits of collapsed cake chain Patisserie Valerie.
The fine pertained to audits carried out between 2015 and 2017.
The Financial Reporting Council said Grant Thornton had “missed red flags” and failed to “question information provided by management”.
Grant Thornton admitted to not following audit rules. It must report annually to show how it is improving.
David Newstead, who carried out the audits, was also fined £150,000 for his role in signing off the accounts.
Claudia Mortimore, deputy executive counsel to the FRC, said: “This decision notice sets out numerous breaches of relevant requirements across three separate audit years, evidencing a serious lack of competence in conducting the audit work.”