EY Faces Scrutiny Over Unauthorised Auditor Reports

Ernst & Young, along with two of its member firms, is under investigation for issuing auditor reports without proper authorization. The Financial Reporting Council revealed that these reports lacked approval from a senior statutory auditor. EY confirmed no financial adjustments were necessary after reviewing their audit files.

Ernst & Young (EY) and two of its member firms are under investigation for potential due process failures concerning unauthorised auditor reports, according to Britain's accounting watchdog announced on Wednesday.

The Financial Reporting Council disclosed that these reports were issued to unidentified entities without receiving proper approval from a senior statutory auditor. In response, EY has acknowledged the issue by informing the affected companies, reviewing audit files, and confirming that no financial adjustments or changes to audit opinions were necessary.

As the investigation unfolds, EY was not immediately available for further comments on the situation.

(With inputs from agencies.)