A financial watchdog has hit an accountancy firm with a fine of £750,000 over the auditing of an AIM-listed electric vehicles group.
The Financial Reporting Council said that errors and discrepancies in the audit work related to Tanfield were not identified by partners at Baker Tilly UK Audit, now RSM UK Audit.
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A tribunal also found that the response by partner Steven Railton to a profit warning in Tanfield's trading statement on 1 July 2008 was inadequate where a subsidiary's accounts were still to be approved. He received a reprimand and a fine of £35,000.
Another partner, Richard King, received a reprimand and a fine of £30,000
The tribunal also made a costs order against the firm.
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The FRC's investigation began in September 2009 and concerned the audits of the financial statements of Tanfield and two of its subsidiaries for the years ended 31 December 2007 and 2008.
King was the engagement partner for the audits of Tanfield Group, and Railton was the engagement partner for the two subsidiaries under investigation.
In 2013, Baker Tilly in the UK merged with RSM Tenon and rebranded.
