The Financial Reporting Council has fined BDO £2mn for "pervasive breaches" in its audit of collapsed construction company NMCN. The UK's fifth-largest accounting group admitted the failures in the 2019 audit, which contained over £21mn of material misstatements. The audit partner Geraint Jones received a separate £75,000 penalty.

The FRC described the mistakes as "significant and serious," highlighting BDO's failure to exercise professional scepticism and properly assess NMCN's going concern status. The clean audit opinions came just months before the unexpected exit of NMCN's chief executive and CFO, preceding the company's collapse with estimated 2020 losses reaching £43mn.

BDO faces heightened regulatory scrutiny and was ranked the worst performer among peers during the regulator's 2025 inspection. The firm resigned as NMCN's auditor in 2020 and now confronts an £80mn lawsuit from administrators who claim BDO drafted two versions of its 2019 audit opinion. BDO denies these allegations while acknowledging its audit "fell below standards."