Nicholas Medcroft KC and Damien Bruneau acted for the Financial Reporting Council in enforcement proceedings concerning BDO’s 2019 audit of NMCN PLC, the listed construction and infrastructure group which collapsed into administration in October 2021.
In a Final Settlement Decision Notice, published on 28 May 2026, BDO and the audit engagement partner admitted breaches of audit requirements which the FRC found to be serious and numerous, and pervasive throughout the audit.
The failings related in large part to BDO’s audit of NMCN’s long-term contracts. The audit team failed to assess evidence critically, challenge management’s assertions and exercise professional scepticism in important areas, including going concern.
BDO was fined £2 million, reduced to £1.33 million after discounts for exceptional cooperation, admissions and early disposal. The audit partner was fined £75,000, reduced to £49,875 on the same basis. Both received severe reprimands.
The Final Settlement Decision Notice is available from the FRC’s website, here
