The UK’s Financial Reporting Council has issued a fine of £3.5m to accountancy firm EY and its former auditing engagement partner Mark Harvey faces a £100,000 penalty over an audit of a set of Stagecoach accounts in 2017.

Sanctions imposed on the Big Four accountancy firm also included a severe reprimand and a non-financial requirement for EY to report to the FRC for one year in respect to its audit work on onerous contract provisions.