The Irish Auditing and Accounting Supervisory Authority has reprimanded and fined a partner at Mazars in relation to an audit carried out on a company that was part of the National Asset Management Agency group.

Michael Tuohy, a statutory auditor and audit partner in Mazars, was fined €10,500 by IAASA, an amount that was reduced by 30% because he settled early.

The audit related to National Asset Management DAC (NAM) and covered the year ending December 16 2016.

The review carried out by IAASA did not call into question the accuracy of the financial statements of NAM, but rather focused on the deficiencies in the audit work carried out by Mr Tuohy and Mazars.

"The Authority's settlement agreement process continues to form a strong basis for the efficient and effective addressing of audit deficiencies uncovered through its inspection regime," IAASA chief executive Kevin Prendergast said.

"In this case the sanction imposed is a proportionate response to the wrongdoing identified, and also recognises the level of cooperation provided by the respondent throughout the investigation," he added.

IAASA said it found that during the audit there was insufficient challenging of assumptions used in the valuation of the loans and receivables balance.

There was also insufficient work carried out on the reasonableness of management assumptions.

It said appropriate procedures were not performed in relation to the scoping, review and consideration of the work of the valuation expert utilised by the audit team.

IAASA also found there was insufficient appropriate audit evidence over the completeness and accuracy of the data underlying the loans and receivables balance because of insufficient IT testing performed.

There was also a failure to sufficiently consider the impact of multiple IT deficiencies and multiple audit adjustments on the planned procedures.

The state watchdog for the accounting and auditing profession also found the audit team did not perform sufficient procedures to test the existence of loans or underlying securities.

In the year in question, NAM had revenues of €371m and made a profit of €7m.

It had assets of €7.4 billion, including €3.9 billion of loans and receivables.

The work conducted by Mazars on NAM was randomly chosen by IAASA for review.

In a statement, Mazars said it accepts the findings and said that importantly, the accuracy of the 2016 financial statements audited have not been questioned by IAASA.

"This was the first audit review undertaken by IAASA a number of years ago and the findings identified were immediately acted upon and resolved by the firm," Mazars said.

"The audit partner in this review has consistently achieved the highest possible score for the quality of their work in subsequent reviews," it said

"We welcome that IAASA found that findings identified have not been repeated and that no further concerns have been raised or identified," it added.

It added that since the first IAASA review there have been no "whole of firm" findings for Mazars.