Sanctions against Forvis Mazars LLP and Mr David Allen

Skip to main content Home News and events News Sanctions against Forvis Mazars LLP and Mr David Allen News types: Investigations Published: 2 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 (FSDN) under the Audit Enforcement Procedure, and has imposed sanctions against Forvis Mazars LLP [1] (Forvis Mazars) and David Allen (Mr Allen), Audit Engagement Partner, in relation to the statutory audit of the financial statements of Studio Retail Group Plc (SRG) for the financial year ended 26 March 2021 (FY21). Mr Allen and Forvis Mazars have admitted serious breaches of the International Standards on Auditing in three areas of audit work in the audit of SRG for FY21: expected credit losses (ECL), going concern and financial services income. The sanctions ordered are: The Respondents were ordered to pay the costs of Executive Counsel’s investigation. SRG was a digital catalogue retailer which offered a range of products and credit to its customers to fund purchase of those products. SRG was listed on the Main Market of the London Stock Exchange at the time of the FY21 audit. On 24 February 2022, approximately 8 months after the audit report had been signed, SRG entered administration. On the same day, the trading company of SRG and certain other assets were sold by SRG’s administrators in a pre-packaged sale. SRG’s creditors, including the lending banks and unsecured creditors, suffered a substantial loss in the administration. SRG’s shareholders lost the entirety of their investment. Two of the audit areas in which there were failings by the Respondents were assessed to be significant risks and key audit matters in the audit: Notwithstanding the fact that the Respondents’ audit work regarding the assessment of going concern breached Relevant Requirements, Executive Counsel does not suggest that such breaches caused the insolvent administration of SRG. Read the Final Settlement Decision Notice . "This decision highlights the rigour and expertise required when auditing Expected Credit Loss provisions. Serious breaches and failings were found in the audit work of this area. Prior to this audit, the FRC’s 2019-2020 Audit Quality Inspection Report on Forvis Mazars, published in July 2020, had highlighted the need for the firm to improve its consideration of judgements in key areas including the valuation of expected credit loss for financial instruments. The case also underlines the continuing importance of auditors carrying out work, particularly in the significant area of Going Concern, which is responsive to risks which have, or should have been, been identified, taking into account economic and other uncertainties and applying sufficient professional scepticism." Forvis Mazars LLP was previously known as “Mazars LLP” and changed its name on 1 June 2024.