EY Fined £4.9 Million for Audit Failures in Thomas Cook Collapse

The Financial Reporting Council penalized EY and its former audit partner for serious breaches in auditing standards during 2017 and 2018, contributing to the travel company's 2019 failure.

The Financial Reporting Council (FRC) fined EY £4.9 million and former audit partner Richard Wilson £105,000 after they admitted to audit failings.
EY's audits of Thomas Cook in 2017 and 2018 were criticized for insufficient scrutiny of goodwill valuations and the company's going concern status.
The FRC highlighted EY's overreliance on Thomas Cook's internal forecasts and failure to address discrepancies with external data.
Concerns were raised about potential conflicts of interest due to close relationships between EY personnel and Thomas Cook's management.
EY has acknowledged its shortcomings, committing to enhanced training, procedures, and methodologies to prevent future lapses.