UK’s FRC probes EY’s audit of Shell 2024 financial statements

The Financial Reporting Council (FRC) has started a ceremonial enquiry into whether Ernst & Young (EY) followed UK audit spouse rotation requirements during its reappraisal of Shell's consolidated fiscal statements for the twelvemonth ending 31 December 2024.

The probe aims to measure adherence to regulations governing the magnitude of work of pb audit partners.

In July 2025, Shell informed the London Stock Exchange that EY had reported issues with compliance regarding audit spouse rotation.

The study identified that clip limits for the rotation of audit partners, arsenic acceptable by the FRC’s Revised Ethical Standard, had been surpassed.

Shell besides announced plans to amend its yearly reports for some 2023 and 2024 aft EY did not conscionable US Securities and Exchange Commission rules connected spouse rotation.

However, Shell clarified its underlying fiscal statements would stay unchanged.

In July, EY communicated to Shell that the US audit opinions it issued for 2023 and 2024 should not beryllium relied upon, reported Reuters.

EY reassigned work to different spouse and began reissuing these audit opinions.

The determination to proceed with the probe was confirmed astatine an FRC Conduct Committee gathering connected 21 October 2025.

The Enforcement Division volition transportation retired its reappraisal successful enactment with the Audit Enforcement Procedure.

EY was quoted by Reuters arsenic saying: “As disclosed connected 2 July 2025, EY UK determined that clip limitations nether the FRC's Revised Ethical Standard regarding rotation of partners connected 1 engagement had been exceeded and reported this substance to the FRC," citing an emailed statement.

Recently, the FRC began investigating EY implicit the unauthorised issuance of auditor’s reports to clients.

"UK’s FRC probes EY’s audit of Shell 2024 fiscal statements " was primitively created and published by International Accounting Bulletin, a GlobalData owned brand.

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