EY is facing an investigation from the Financial Reporting Council (FRC) in relation to the unauthorised issuance of auditor reports.

Two individuals and the company itself will be examined by the accounting regulator’s investigation under the Accountancy Scheme.

The Accountancy Scheme covers members of several professional bodies for accountants, including the Institute of Chartered Accountants in England and Wales, Chartered Institute of Management Accountants, Chartered Institute of Public Finance and Accountancy, Institute of Chartered Accountants in Ireland, Association of Chartered Certified Accountants, and the Institute of Chartered Accountants of Scotland. 

A decision to open the investigation was made at a meeting of the FRC’s Conduct Committee in July this year and the investigation will be conducted by the FRC’s Executive Counsel.

A statement by the FRC said: “The opening of an investigation does not indicate that the FRC has made, or will make, any findings of misconduct by a member or member firm.”

In response, EY has informed the FRC that it has identified the relevant audited entities, remediated the audit files, and concluded that no adjustments to the related financial statements or audit opinions were required.

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