EY Auditors Under Investigation for Due Process Failures

Ernst & Young is under scrutiny for issuing auditor reports without proper authorisation. Britain's Financial Reporting Council is investigating the situation involving EY and two individuals. EY self-reported the incident, conducted internal reviews, and found no financial adjustments were necessary, pledging full cooperation with the inquiry.

In a move that has placed one of the world's leading audit firms under the microscope, Ernst & Young (EY) and two individuals are being investigated for due process failures. Britain's accounting watchdog, the Financial Reporting Council (FRC), stated that auditor reports were issued without proper authorisation, sparking concerns about the integrity of these documents.

The FRC did not disclose the companies that received the unauthorised audits but confirmed that the reports were not signed off by a senior statutory auditor. In a response to the investigation, EY, part of the Big Four accounting firms, reported that upon internal review, no financial adjustments or changes to audit opinions were deemed necessary.

EY has taken proactive measures by self-reporting the issue to the FRC and emphasized its commitment to cooperate fully with the ongoing investigation, underscoring its commitment to upholding the standards expected in the accounting profession.

(With inputs from agencies.)