EY has been forced to tell its audit client Shell plc that for the FY23 and FY24 it was not compliant with the SEC’s auditor partner independence rules.
As a results Shell plc has filed an amendment to its Form 20-Fs for those years, with new US auditor opinions issued by EY.
EY informed Shell on 1 July that it had broken the audit partner rotation rules in those two years. It means the Big 4 firm has breached not only US listing rules, but also those of the UK Ethical Standards for Auditors!
EY said in a statement: “EY UK deeply regrets this occurred and has remediated the matter.
“There has been no change to the financial information previously prepared by Shell plc, for the applicable years, and EY UK has provided updated, unqualified, SEC audit opinions. We are committed to the highest standards of audit quality and will continue to take any necessary steps to ensure these standards are upheld.”
The financial statements for 2023 and 2024 remain unchanged.
