UK Regulator FRC Probes EY Over Unauthorised Audit Reports

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

The probe will examine the circumstances that led to the sign-offs and assess whether auditing standards were breached. The decision was taken by the FRC’s Conduct Committee on July 22, 2025. Two EY employees are included in the investigation, though they have not been named. EY said it identified affected clients, corrected audit files, and concluded that no changes were required to related financial statements or audit opinions. The FRC said the opening of an investigation does not imply misconduct. EY told The Times it self-reported the matter and will cooperate with the inquiry. The case adds to other FRC investigations involving EY, including audits linked to the Post Office, Made.com, NMC Health, and Shell.