UK regulator the Financial Reporting Council (FRC) has launched an investigation into Ernst & Young (EY) regarding the unauthorised issuance of auditor’s reports to clients.   

The purpose of the investigation is to assess the circumstances leading to these “unauthorised” signoffs and determine if auditing standards were compromised. 

The decision to begin this inquiry was taken by the FRC’s Conduct Committee on 22 July 2025.  

Two employees of EY are included in this examination, though they have not been named publicly.  

EY reported that it had identified and informed all impacted clients, corrected the relevant audit files, and found no revisions necessary for the associated financial statements or audit opinions. 

The FRC underlined that starting an investigation should not be interpreted as confirmation of wrongdoing.  

Updates will be issued if developments occur as examinations continue. 

The FRC was told by the EY, “No adjustments to the related financial statements or audit opinions were required.”  

A spokesperson from EY was quoted by The Times as saying: “We self-reported this matter to the FRC and will continue to fully co-operate with the investigation.”  

Both EY and FRC declined to discuss any further specifics about the ongoing case, reported The Times. 

The new review adds to four other active investigations involving EY currently being conducted by the FRC.  

Ongoing reviews include assessments of EY’s work for entities such as the Post Office, Made.com, NMC Health (formerly part of the FTSE 100), and another company classified as being of public interest.  

The FRC is also examining audits for oil and gas company Shell after it became clear that a partner led those audits beyond timeframes set by independence regulations.  

So far in 2025, EY has already paid more than £5m in fines related to audits for Thomas Cook and Stirling Water Seafield Finance, which is affiliated with Veolia in the UK.