The UK Financial Reporting Council (FRC) finds audit firm King & King and its managing partner Milankumar Patel responsible for serious audit failures connected to audits of companies in Sanjeev Gupta’s metals group. According to the regulator, the firm shows “pervasive breaches” and “widespread deficiencies,” including shortcomings in how it performs audits with independence. The FRC says the firm did not adequately identify or address clear self-interest risks when carrying out audit work for the Gupta metals entities.
The FRC fines King & King and Patel a combined £378,184. In addition to the financial penalty, the watchdog issues a severe reprimand and imposes restrictions, including a temporary ban from certain audit-related activities. The decision follows a multi-year investigation, reported as spanning four years.
The regulator’s action is presented as a disciplinary step for professional and compliance failures, rather than a direct finding on the underlying companies’ financial reporting. The case underscores the watchdog’s focus on auditor independence and the adequacy of audit procedures.
