What is the FRC investigating EY for regarding Shell?

The FRC is investigating EY for potentially violating UK audit partner rotation rules during their audit of Shell's 2024 financial statements.

Did EY's audit partner issues affect Shell's financial results?

Shell stated its underlying financial statements would remain unchanged, but it will amend its 2023 and 2024 annual reports.

Which audit partner rules did EY and Shell reportedly break?

EY exceeded time limits for audit partner rotation under the FRC's Revised Ethical Standard and US SEC rules.

Home / Business and Economy / EY Probed Over Shell Audit Partner Rotation Failures

EY Probed Over Shell Audit Partner Rotation Failures

17 Dec

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Summary

FRC investigates EY for breaking UK audit partner rotation rules.
EY reported issues with Shell's 2024 financial statement audits.
Shell will amend 2023 and 2024 reports due to US partner rotation rules.

EY Probed Over Shell Audit Partner Rotation Failures

The Financial Reporting Council (FRC) has initiated a formal investigation into Ernst & Young (EY) regarding its audit of Shell's financial statements for the year ending 31 December 2024. The inquiry centers on whether EY adhered to UK regulations concerning the mandatory rotation of audit partners.

EY had previously disclosed to Shell in July 2025 that certain time limits for audit partner rotation, as stipulated by the FRC's Revised Ethical Standard, had been exceeded. This led Shell to announce plans to amend its 2023 and 2024 annual reports, though the underlying financial data will not change.

Further complications arose when EY informed Shell that the US audit opinions for 2023 and 2024 should not be relied upon. EY has since reassigned responsibility to another partner and is reissuing these opinions. The FRC confirmed its Enforcement Division will conduct the review under its established procedures.