FRC: Investigation regarding an audit of Shell plc by Ernst & Young LLP

This Press Notice concerns the opening of an investigation into one or more Statutory Auditor(s) and/or Statutory Audit Firm(s)¹. The investigation does not relate to any persons or entities other than the relevant Statutory Auditor(s) and/or Statutory Audit Firm(s) and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities. The opening of an investigation does not indicate that the FRC has made, or will make, any findings of breach of Relevant Requirements.  

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 Standard².  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. 

Footnotes:

1. Defined terms in this press notice refer to terms defined in the FRC's Audit Enforcement Procedure.
2. 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

Notes to editors: 

The purpose of the FRC is to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for statutory audit in the UK, the FRC sets UK auditing and ethical standards, monitors audit quality and operates an enforcement regime in respect of statutory auditors and statutory audit firms.

Past FRC Enforcement Outcomes can be found here.