Finance
Four partners leave EY after potential breaches of Shell audit, FT reports
Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
Quick Summary
Four EY partners left after Shell audit breaches, prompting Shell to appoint PwC as its new auditor. The Financial Reporting Council is investigating.
Four partners leave EY after potential breaches of Shell audit, FT reports
EY Partners Leave Following Shell Audit Issues
Feb 12 (Reuters) - Four partners have left EY following potential breaches in its audit of Shell that resulted in the oil major dropping the accounting firm as its auditor, the Financial Times reported on Thursday.
Details of the Departure
The partners left one of the world's "Big Four" leading accounting and consulting networks in December as it rushed to contain the fallout from the compliance failure, the report said citing public records and people familiar with the matter.
Shell's New Auditor
The four who left included one partner who had been elevated to EY's top ranks just months earlier and Gary Donald who led the Shell audit, it added.
Regulatory Investigation
Earlier this month, Shell said it had chosen PricewaterhouseCoopers (PWC) as its next auditor after a tender process, with PwC set to replace EY from 2027.
Shell said in a July regulatory filing that EY had breached rules that require an accounting firm to change its lead audit partner every five to seven years.
In December, Britain's Financial Reporting Council said it had opened an investigation into EY's audit of Shell's 2024 financial statements over potential breaches of audit partner rotation rules.
Both EY and Shell were not immediately available for comment.
(Reporting by Hyunsu Yim in Barcelona; Editing by Kim Coghill)
Key Takeaways
- •Four EY partners left due to Shell audit breaches.
- •Shell dropped EY as its auditor following the issues.
- •PwC will replace EY as Shell's auditor from 2027.
- •The Financial Reporting Council is investigating EY.
- •The breach involved audit partner rotation rules.
Frequently Asked Questions about Four partners leave EY after potential breaches of Shell audit, FT reports
1What is an audit?
An audit is an official inspection of an organization's accounts, typically by an independent body, to ensure accuracy and compliance with established standards.
2What is compliance in finance?
Compliance in finance refers to the process of adhering to laws, regulations, and guidelines that govern financial practices and reporting.
3What is a regulatory investigation?
A regulatory investigation is an inquiry conducted by a regulatory body to assess whether an organization is complying with applicable laws and regulations.
4What is financial reporting?
Financial reporting is the process of producing statements that disclose an organization's financial status to management, investors, and regulators.
5What is an accounting firm?
An accounting firm is a business that provides accounting services such as auditing, tax preparation, and consulting to clients.
