EY Faces UK Probe Over Shell Audit Independence

The UK's accounting watchdog has launched an investigation into Ernst & Young (EY). The probe will examine whether EY broke auditor independence rules during its 2024 audit of the energy giant Shell. The Financial Reporting Council (FRC) announced the move. It will specifically review EY's compliance with "ethical and independence standards." Auditor independence rules are designed to ensure accountants remain objective and free from conflicts of interest. These rules prevent audit firms from having financial or personal ties to their clients. The goal is to guarantee that company financial statements are checked fairly. Both EY and Shell have been informed of the investigation. The FRC has not provided further details on the specific concerns. EY stated it will cooperate fully with the inquiry. Shell confirmed it is aware of the investigation. The outcome of the FRC's probe will be published upon completion.