UK Financial Reporting Council (FRC) Fines Audit Firm BDO $1.8 Million (£1.33 Million) & BDO Audit Engagement Partner Geraint Jones $67,000 (£49,875) for Audit Breaches in Collapsed UK Construction & Consultancy Services Company NMCN (Entered into Administration in 2021)
29th May 2026 | Hong Kong
UK Financial Reporting Council (FRC) has fined audit firm BDO $1.8 million (£1.33 million) & BDO Audit Engagement Partner Geraint Jones $67,000 (£49,875) for audit breaches in collapsed UK construction & consultancy services company NMCN (Entered into administration in 2021). Announcement (28/5/26): “Executive Counsel of the Financial Reporting Council (FRC) has issued a Final Settlement Decision Notice under the Audit Enforcement Procedure and imposed sanctions against BDO LLP (BDO) and Geraint Jones (Mr Jones), audit engagement partner, in relation to the statutory audit of the financial statements of NMCN PLC (NMCN) for the financial year ended 31 December 2019. The breaches in this case were significant and serious. The FRC made findings of numerous and pervasive breaches that were fundamental to BDO’s audit work, commonly involving shortcomings in obtaining sufficient appropriate audit evidence. The following sanctions were imposed: Against BDO: A financial penalty of £2,000,000 adjusted for the mitigating factor of exceptional cooperation by a reduction of 5% and further discounted for admissions and early disposal by 30% so that the financial penalty payable is £1,330,000; A published statement in the form of a severe reprimand; and. A declaration that the 2019 audit report signed on behalf of BDO did not satisfy the relevant requirements. Against Mr Jones: A financial penalty of £75,000 adjusted for the mitigating factor of exceptional cooperation by a reduction of 5% and further discounted for admissions and early disposal by 30% so that the financial penalty payable is £49,875; A published statement in the form of a severe reprimand; and. A declaration that the 2019 Audit Report signed by Mr Jones did not satisfy the relevant requirements. BDO has also paid the agreed costs of Executive Counsel’s investigation. NMCN (which entered into administration in October 2021) operated as a construction and consultancy services group delivering major building and national infrastructure projects across the UK. Its shares were listed on the London Stock Exchange. Its core business operated through long‑term contracts. The circumstances of the audit, namely the first COVID-19 lockdown and the original Audit Engagement Partner having unexpectedly to withdraw from the audit, were challenging. BDO and the replacement Audit Engagement Partner, Mr Jones, have admitted breaches of Relevant Requirements in multiple areas of the 2019 audit of NMCN. The breaches occurred predominantly within the audit work on NMCN’s long‑term contracts. The Respondents had identified significant risks of material misstatement in respect of revenue and profit recognition on long‑term contracts and the recoverability of contract assets, trade receivables and retentions. The audit work performed in response to these significant risks was deficient and the Respondents failed to obtain reasonable assurance concerning whether the financial statements as a whole were free from material misstatement. There were further breaches in the audit of going concern, including a failure to meet the requirement to plan and perform the audit with professional skepticism. Consequently, BDO and Mr Jones did not obtain sufficient appropriate audit evidence to be able to conclude on whether NMCN’s going concern status was subject to material uncertainty. While the breaches were serious and significant, it is not suggested that the breaches were intentional, dishonest, deliberate or reckless. Nor is it asserted that the Financial Statements were in fact misstated. Furthermore, both BDO and Mr Jones gave an exceptional level of cooperation with the investigation, which Executive Counsel took into account in determining the sanctions.”
“ UK Financial Reporting Council (FRC) Fines Audit Firm BDO $1.8 Million (£1.33 Million) & BDO Audit Engagement Partner Geraint Jones $67,000 (£49,875) for Audit Breaches in Collapsed UK Construction & Consultancy Services Company NMCN (Entered into Administration in 2021) “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
UK Financial Reporting Council (FRC) Fines Audit Firm BDO $1.8 Million (£1.33 Million) & BDO Audit Engagement Partner Geraint Jones $67,000 (£49,875) for Audit Breaches in Collapsed UK Construction & Consultancy Services Company NMCN (Entered into Administration in 2021)
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
