Audit firm Ernst & Young LLP (EY) has been fined £4.875m (approximately €5.7m) by the UK Financial Reporting Council (FRC) for serious failings during audits of Thomas Cook for the financial years ended 30 September 2017 and 2018. A partner responsible for those audits was also fined £105,000 (around €122,000).

The FRC identified significant failings in Thomas Cook’s assessment of goodwill impairment and going concern. In 2018, these failings were of particular concern given the deterioration in the company’s financial performance.

In addition to financial sanctions, EY must undertake a specific review of its goodwill impairment and going concern audits, as well as assess the effectiveness of corrective measures put in place to prevent recurrence of such breaches. The audit firm has acknowledged these failings and cooperated with the FRC’s investigation. “Providing high quality audits remains our priority,” it added.

The bankruptcy of Thomas Cook in 2019 had major repercussions. The brand was successively acquired by the Chinese group Fosun, and then in 2023 by the Polish travel platform Esky.

This article was originally published in .