Farepak. Tenon. Connaught. AssetCo. Aero Inventory. Catties. All these and more are well-known audit failures that mm attracted Financial Reporting Council (FRC) fines and recriminations. Take Farepak, the Christmas savings club, the furthest back of that collection. In that case, the FRC investigation found that EY and audit partner Alan Flitcroft failed to obtain sufficient appropriate audit evidence that all material events had been identified and reflected in Farepak's 2005 financial statements and that Flitcroft, in particular, failed to properly consider the company's ability to continue as a going concern. The ruling said that the firm and audit partner did not properly consider whether any relevant disclosures were required in the financial statements to give a true and fair view, or make proper enquiries of the directors and examine the appropriate financial information.
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