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The UK accounting regulator has launched an investigation into EY’s audit of Shell’s accounts for last year.
The Financial Reporting Council’s decision to open a probe comes after Shell in July said that EY had breached independence rules in the US and UK that set strict periods for how long a partner at an accounting firm can lead an audit.
Referring to Shell’s July statement, the FRC said on Monday that its probe would “include consideration of whether relevant requirements relating to partner rotation have been breached”, without giving further details.
EY said on Monday that it had breached the rules governing the rotation of partners on an audit, adding that it would “continue to fully co-operate with the FRC throughout the investigation”.
EY has been Shell’s auditor for almost a decade. The firm earned $66mn from work for Shell in 2024, according to the company’s annual report.
This is a developing story