Deloitte fined in the UK after irregularities in audits of Go-Ahead and the mishandling of more than £30 million in public funds

Deloitte has been fined £6.05 million in the UK after the Financial Reporting Council (FRC), the regulatory authority, identified numerous irregularities in audits carried out for Go-Ahead Group between 2016 and 2020. The investigation found that two subsidiaries of the transport company unjustifiably retained more than £30 million in public funds, which they later recorded as profit instead of returning them to the government.

The FRC accused Deloitte of failing to sufficiently scrutinize Go-Ahead’s decisions and of not challenging clearly questionable practices. The authority described the situation as an “extremely concerning pattern of deficiencies” that continued over several years.

The investigation began four years ago following the scandal over the management of funds intended for rail services. The penalty was initially set at £11 million but was reduced due to Deloitte’s cooperation and admission of the irregularities. Go-Ahead was separately fined £23.5 million and lost its contract for Southeastern rail services in 2021.

Deloitte acknowledged the deficiencies and said it regretted the situation. Separately, the FRC closed an investigation into the audit of retailer Joules’ financial statements without imposing sanctions.