Big 4 Audit Firm EY 4 Partners Exited after Breaching Audit Rules in Audit of $222 Billion Oil Giant Shell Which Resulted in Termination of $66 Million Yearly Audit Contract, UK Financial Reporting Council (FRC) Started Investigation in 2025 December on EY as Auditor of Shell Relating to Non-Compliance with Audit Partner Rotation Rules Including Exceeding Time Limitations for Partner Rotation under UK FRC Revised Ethical Standard
14th February 2026 | Hong Kong
Big 4 audit firm EY 4 partners have exited the firm after breaching audit rules in audit of oil giant Shell ($222 billion market value), which resulted in termination of the $66 million yearly audit contract. In 2025 December, the UK Financial Reporting Council (FRC) started investigation on EY as auditor of oil giant Shell relating to non-compliance with audit partner rotation rules including exceeding time limitations for partner rotation under UK FRC Revised Ethical Standard. Announcement (15/12/25): “The Financial Reporting Council (FRC) has commenced an investigation in relation to the statutory audit conducted by Ernst & Young LLP (EY) of the consolidated financial statements of Shell plc (Shell) for the financial year ended 31 December 2024. On 2 July 2025 Shell announced to the London Stock Exchange that EY had reported non-compliance with audit partner rotation rules, including exceeding the time limitations for partner rotation under the UK FRC’s Revised Ethical Standard. The investigation will include consideration of whether Relevant Requirements relating to partner rotation have been breached. The decision to open the investigation was made at a meeting of the FRC’s Conduct Committee on 21 October 2025. The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.”
“ Big 4 Audit Firm EY 4 Partners Exited after Breaching Audit Rules in Audit of $222 Billion Oil Giant Shell Which Resulted in Termination of $66 Million Yearly Audit Contract, UK Financial Reporting Council (FRC) Started Investigation in 2025 December on EY as Auditor of Shell Relating to Non-Compliance with Audit Partner Rotation Rules Including Exceeding Time Limitations for Partner Rotation under UK FRC Revised Ethical Standard “
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UK Financial Reporting Council (FRC) Starts Investigation on EY as Auditor of $206 Billion Oil Giant Shell Relating to Non-Compliance with Audit Partner Rotation Rules Including Exceeding Time Limitations for Partner Rotation under UK FRC Revised Ethical Standard
14th December – The UK Financial Reporting Council (FRC) has started investigation on EY as auditor of oil giant Shell ($206 billion market value) relating to non-compliance with audit partner rotation rules including exceeding time limitations for partner rotation under UK FRC Revised Ethical Standard. Announcement (15/12/25): “The Financial Reporting Council (FRC) has commenced an investigation in relation to the statutory audit conducted by Ernst & Young LLP (EY) of the consolidated financial statements of Shell plc (Shell) for the financial year ended 31 December 2024. On 2 July 2025 Shell announced to the London Stock Exchange that EY had reported non-compliance with audit partner rotation rules, including exceeding the time limitations for partner rotation under the UK FRC’s Revised Ethical Standard. The investigation will include consideration of whether Relevant Requirements relating to partner rotation have been breached. The decision to open the investigation was made at a meeting of the FRC’s Conduct Committee on 21 October 2025. The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.”
Notes:
- Defined terms in this press notice refer to terms defined in the FRC’s Audit Enforcement Procedure.
- Due to EY non-compliance with audit partner rotation rules, Shell to update 2023 and 2024 Form 20-Fs; financial statements remain unchanged – 07:00:00 02 Jul 2025 – SHEL News article | London Stock Exchange
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