Investigation regarding the conduct of two Members and Ernst & Young LLP in relation to the issuance of unauthorised auditor’s reports

News types: Investigations

Published: 10 December 2025

This press notice concerns the opening of an investigation into the relevant Members and Member Firm.[1] The investigation does not relate to any persons or entities other than the relevant Members and Member Firm 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 Misconduct by a Member or Member Firm.

The Financial Reporting Council (“FRC”) has commenced an investigation under the Accountancy Scheme[2] into the conduct of two Members and Ernst & Young LLP in relation to the unauthorised issuance of auditor’s reports to audited entities.

Ernst & Young LLP has informed the FRC that it has identified and informed the relevant audited entities, remediated the audit files, and concluded that no adjustments to the related financial statements or audit opinions were required.[3]

The decision to open the investigation was made at a meeting of the FRC’s Conduct Committee on 22 July 2025.

The investigation will be conducted by the FRC’s Executive Counsel.

Footnotes

  1. [1]

    Defined terms used in this notice have the meanings given to them in the Accountancy Scheme or the Accountancy Regulations 30 March 2021 unless otherwise stated.
  2. [2]

    The Accountancy Scheme covers Members and Member Firms of the following professional bodies for accountants: Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Institute of Management Accountants (CIMA), Chartered Institute of Public Finance and Accountancy (CIPFA), Institute of Chartered Accountants in Ireland (ICAI), Association of Chartered Certified Accountants (ACCA), and Institute of Chartered Accountants of Scotland (ICAS).  Further information about the Accountancy Scheme can be found here https://www.frc.org.uk/library/enforcement/accountancy-scheme/
  3. [3]

    Save in one case, where the audited entity is no longer in existence.

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