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