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Four EY partners exit after audit breaches in Shell contract, ft reports
The EY company logo is seen at their headquarters in London, Britain, April 16 2023. REUTERS/Peter Nicholls
The EY company logo is seen at their headquarters in London, Britain, April 16 2023. REUTERS/Peter Nicholls
Four EY partners exit after audit breaches in Shell contract, ft reports
Feb 12 (Reuters) – Four EY partners have left the firm after breaching independence rules during its audit of Shell that led to the termination of a $66 million-a-year contract, the Financial Times reported on Thursday, citing people familiar with the matter.
The exits happened last December as the accounting firm rushed to contain the fallout from the compliance failures, the report said.
Shell did not respond immediately to a Reuters’ request for comment. EY declined to comment.
Shell said in a July 2025 regulatory filing that EY had breached rules that require an accounting firm to change its lead audit partner every five to seven years.
At the time, it also said that it would amend its 2023 and 2024 annual reports after EY failed to comply with U.S. Securities and Exchange Commission rules on partner rotation.
In December, Britain’s Financial Reporting Council said it had opened an investigation into EY’s audit of Shell’s 2024 financial statements over potential breaches of audit partner rotation rules.
Earlier this month, Shell chose PricewaterhouseCoopers (PwC) as its next auditor after a tender process, with PwC set to replace EY from 2027.
(Reporting by Hyunsu Yim and Anna Peverieri in Barcelona; Editing by Kim Coghill and Tomasz Janowski)
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