UK watchdog hits EY, partner with $1.6 million fine for inadequate audit of retailer Made.com

Key Takeaways

• The Financial Reporting Council imposed financial and non‑financial sanctions on EY and the partner over inadequate audit procedures in the Made.com 2021 audit, including flawed materiality measurement and insufficient testing of revenue and controls (ey.com).
• EY’s Transparency Report reveals that the Made.com audit received an internal Audit Quality Review rating of 3 (on a scale where 1 is highest), mainly due to unsuitable changes in materiality basis and deficient documentation of revenue and control testing (ey.com).
• This sanction adds to EY’s mounting regulatory challenges: as of June 2025, the firm set aside a record £188 million for legal and regulatory claims in the UK, including investigations into its audits of Made.com and other high‑profile entities (irishtimes.com).