Sanctions against Ernst Young LLP and Ms Julie Carlyle

Skip to main content Home News and events News Sanctions against Ernst & Young LLP and Ms Julie Carlyle News types: Published: 28 July 2026 The Final Settlement Decision Notice linked to this notice is a document prepared by Executive Counsel following an investigation relating to, and admissions made by, the Respondents. It does not make findings against any persons other than the Respondents and it would not be fair to treat any part of this document as constituting or evidencing findings against any other persons or entities since they are not parties to the proceedings. Executive Counsel to the Financial Reporting Council (FRC) has issued a Final Settlement Decision Notice under the Audit Enforcement Procedure, imposing sanctions on Ernst & Young LLP (EY) and Julie Carlyle (Ms Carlyle), Audit Engagement Partner, in relation to the statutory audit of Made.com Group plc (Made.com) for the financial year ended 31 December 2021 (FY21). EY and Ms Carlyle have admitted breaches of the International Standards on Auditing in two areas of the audit. In both areas, there was a failure appropriately to consider information available up to the date of the auditor’s report in assessing the reliability of management’s forecasts. The Final Settlement Decision Notice does not question the truth and fairness of the FY21 financial statements. The sanctions ordered are: The Respondents were ordered to pay the costs of Executive Counsel’s investigation. The Respondents have agreed the failings identified and cooperated throughout the investigation. Made.com was an online retailer of home furniture and homeware which listed on the main market of the London Stock Exchange in June 2021. Following a period of strong performance during the COVID-19 pandemic, the Group was adversely affected by supply chain disruption and a downturn in consumer demand during 2022. This decline in performance was reflected in trading updates issued in May and July 2022, and in the FY22 interim financial statements which reported a loss before tax of £35.3 million. EY issued a disclaimer of opinion on the FY22 interim financial statements, primarily due to material uncertainties relating to going concern. In September 2022, the Board announced that it had engaged financial advisers to explore a sale of the business. The Company entered administration on 8 November 2022. “In this case the auditors relied on management’s forecasts without applying sufficient challenge or carrying out adequate testing to obtain sufficient evidence. Absent such challenge and evidence, there is a heightened risk that financial statements present an inaccurate picture of a company’s financial position.” Read the Final Settlement Decision Notice.